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Iran approves crypto for imports

  • September 23, 2022
  • 2 min read
Iran approves crypto for imports

Amid international trade sanctions, Iran’s Industry Mines, and Trade Ministry has approved the use of cryptocurrency for imports into the nation. Trade Minister Fatemi Amin confirmed to local news reporters that detailed regulations have been approved that outline the use of crypto for trade as well as supplying the electricity needed for Bitcoin and crypto miners in the country.

Amin highlighted the regulatory changes at an automotive industry exhibition just a week after the country placed an import order for vehicles equal to $10 million using crypto as a payment method. The trade ministry had previously indicated that the use of crypto and smart contracts would be used in foreign trade by September 2022.

Following on from the crypto-funded import, Iran’s Import Association has called for clearer regulatory parameters to ensure that local businesses and importers are not constrained in any way. The minister pointed out that the new regulations specify any issues related to using cryptocurrency. That includes the process to grant licences and the requirement to supply energy for mining operations. 

Local businesses will be able to import vehicles into Iran along with a number of imported products using crypto instead of US dollars or Euros.

Trade sanctions have been due to Iran’s nuclear program and have cut the country out of the global banking system. The country has turned its attention to adopting crypto to address and potentially bypass these sanctions. This is because of the decentralised nature of public blockchains such as Bitcoin and Ethereum. Neither of these are under the control of any government or central authority.

Operating licences were given to 30 crypto mining centres in June 2021 and over 2,500 permits have been approved for the establishment of new mining operations. In the following months, the government also cracked down on illegal mining operations and gave a three-month ban on mining due to the pressure it had on the electricity grid.

 

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