Iran authorizes banks and foreign exchange operators to use cryptocurrencies to pay for imports

Iran Authorizes Banks and Foreign Exchange Traders to Use Cryptocurrencies to Pay for Imports - Iran 1024x683The Central Bank of Iran has authorized banks and money changers to use cryptocurrencies mined by authorized crypto miners in the country to pay for imports. Meanwhile, a bill is being drafted to provide regulatory clarity on cryptocurrency-related activities.

Using cryptocurrencies to pay for imports

The Central Bank of Iran (CBI) has announced that licensed banks and currency exchange operators can use cryptocurrency mined by licensed crypto miners in Iran to pay for imports, the Financial Tribune reported on Saturday. The excerpt read: "Central Bank Says Lenders and Authorized Money Exchange Offices Have Been Informed of the Regulatory Framework for Crypto Payment."

In October last year, the Iranian government changed its cryptocurrency regulation to allow the country's central bank to finance imports with bitcoin legally mined in the country. Licensed crypto miners are required to sell their coins directly to the central bank. The measure was proposed by the CBI and the Ministry of Energy.

Iran has issued over 1.000 licenses to cryptocurrency miners, including one to the Turkish bitcoin mining giant Iminer. Power plants in Iran can mine cryptocurrencies and bitcoin miners have been granted exclusive access to the electricity generated by three of them. In January, Iran shut down 1.620 illegal cryptocurrency mining companies.

Meanwhile, Mohammadreza Pourebrahimi, head of the economic commission, said the commission has carried out a comprehensive review of crypto assets in Iran and will present its findings next week.

"We are planning a bill in which a new mechanism is defined for activities related to cryptocurrency," said the news agency Tasnim.

The bill will define the obligations of the administrative bodies, namely the Central Bank of Iran and the ICT miners, industries, energy and economy.

How to trade cryptocurrencies?

Trading cryptocurrencies has now become a daily activity for many traders around the world. There are two main ways to buy Bitcoins and other cryptocurrencies:

  • Through an exchange
  • Or with trading

In the first case, you have to rely on an authorized exchange such as Coinbase, or Binance, where you can buy Bitcoin directly, like any other asset.

In the second case, however, we rely on trading platforms, to execute the trading of assets. In this case, you will not be in direct possession of the coin, but simply bet on its price trend. Simply put, with cryptocurrency trading, it is possible to make profits whether the value of the cryptocurrency goes down or up.

To conclude then, we would like to ask you what do you think of this new central bank directive on the use of cryptocurrencies to pay for imports? Let us know your opinion in the comments section below.