Iran approves use of cryptocurrency for imports, trading

LAGOS (CoinChapter.com) — In another remarkable development for the cryptocurrency industry, Iran has officially approved the use of digital currency for importation and cross-border trading.

Reza Fatemi Amin, Iran’s Minister of Mines and Trade made the announcement, indicating Iran’s shift toward digital currency. The new approval serves as a measure to bypass U.S. sanctions imposed on the country’s finance and banking sector.

Notably, the minister explained that the government has passed a bill introducing regulations for cryptocurrency trade transactions, allowing the use of cryptocurrencies for import transactions.

Moreover, the use of cryptocurrencies will help the country circumvent sanctions because crypto are not traded through traditional channels. Recall that the middle eastern country used digital currency to conduct official importation transactions for the first time last month.

Notably, Iran made its first official import cryptocurrency order, worth $10 million. It served as a test run for allowing the country to trade through digital assets that bypass the global financial system.

Iran’s policy on cryptocurrency

It is important to note that in 2019, the Iranian government enacted a ban on the trading of cryptocurrency within the country. This was mainly focused on reducing crypto-mining facilities in Iran, which were affecting the supply of power across the country. It’s worth noting that 4.5% of all bitcoin mining occurs in the country, partly due to the country’s cheap electricity.

Additionally, Iran police have confiscated over 9,000 illegal crypto-mining rigs since March 21, 2022, according to reports. The illegal mining caused associations in Iran to call for more regulations on cryptocurrency as a whole.

However, the country did not completely ban the usage of cryptocurrencies like Bitcoin and Ethereum. This was more to do with the use of highly valued cryptocurrencies for international trading and exports. In October 2020, Iran amended a law to allow imports to be funded using cryptocurrency.

Furthermore, as a result of the new development, Tehran, one of the region’s largest economies, might be on its way to embracing cryptocurrency technology. The country is embracing cryptocurrency to bypass U.S. sanctions and trade with other countries on the global scene.