Iran Says “Yes” to Crypto Mining

September 5, 2018


Iran Says “Yes” to Crypto Mining

Iran is widely opening its doors to crypto market, despite the fact that new round of U.S sanctions on country’s oil and gas reserves will be reimposed in November.

The administration of Iran’ s President Hassan Rouhani has officially announced recognition of crypto mining.

As IBENA news agency reports, the authorities of Iran have finally accepted cryptocurrency mining as an industry that needs to be developed in the country.

According to the secretary of the High Council of Cyberspace Abolhassan Firouzabadi, this is a joint decision which was accepted by Ministry of Communications and Information Technology, Central Bank, Ministry of Industry, Mining and Trade, Ministry of Energy, as well as Ministry of Economic Affairs and Finance. He added that mining of existing cryptocurrencies, such as bitcoin is being considered.

“The framework and final policies for trade and participation of startups and trade activists in the cryptocurrency sphere will be declared by the end of current month (ending on September 22), but no definitive decision has been taken yet.”

At the same time the official called mining as “one of the most important branches of the virtual currency sector, which attracts many players of the cryptocurrency ecosystem.”

At the same time, Iran is working intensively on creating and launching of its own cryptocurrency. At the end of August it was announced that the new cryptocurrency will be backed by rial (country’s official currency). It is designed and developed by Informatics Services Corporation based on Hyper-ledger Fabric Platform technology.

An important factor is that the issuer of the cryptocurrency is the Central bank of Iran and it is the one to decide the volume of issuance. Another key factor is that the new cryptocurrency is developed under private blockchain infrastructure, excluding the possibility of being mined.

As reported in April, Central Bank of Iran (CBI) banned the country’s banks from dealing in cryptocurrencies, stating that they “have the option to be used for money laundering, supporting terrorism, and exchange of sums between wrongdoers, pointed out the CBI circulation”.