The Government of the Islamic Republic of Iran approved the legalization of crypto mining in a decision issued by its Supreme Council of Cyberspace. This was published by the regional news agency IBENA in an article that generated very positive responses from the local crypto-trading community.
According to the information provided by regional media, the government now considers crypto-mining to be a legally accepted industrial activity, and although a regulatory framework has yet to be established, it will have to be developed as soon as possible:
“Secretary” of Iran’s Supreme Council of Cyberspace stressed that cryptocurrencies mining like bitcoin has been accepted as an industry in the government, and all related organizations to the mining such as 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 have agreed it, but the final policy for legislating it hasn’t been declared yet.”
Iran: Looking at Crypto for a Better Quality of Life
The decision to promote crypto mining could be part of a plan by the Muslim country’s government to develop its economy and improve the quality of life of its people following a series of economic sanctions imposed by US President Donald Trump, who has restricted the country’s access to U.S. dollars.
With a massive adoption of cryptocurrencies, governments like the U.S. risk losing the power to control the economy of weaker countries. This premise is one of the main reasons why great crypto-advocates are also promoters of libertarian or anarcho-capitalist philosophies.
Likewise, Mr. Firouzabadi added that Iran is considering the possibility of issuing a central bank digital currency, as a means to boost the economy and promote international trade without third-party control.
Bitcoin (BTC) Reaches All Time Highs
The community of Iranian crypto users received the news with great enthusiasm. In fact, after this decision was made public, historical peaks were reported in the prices of Bitcoin (BTC), which had been approaching the values of December 2017 since yesterday.
Price of BTC is nearly at its all time high in Iranian local currency. Bitcoin bull markets already started in Iran as Rial price goes down against USD.#ExchangeIran #BitcoinIran #Iran #Bitcoin #IranEconomy pic.twitter.com/VKTZ47UDOo
— EXIR (@EXIR_Official) September 3, 2018
At the time of converting the local currency to U.S Dollars, it could be concluded according to official figures that Bitcoin came to have a price of $24k. However, Iranian exchange EXIR comments that these figures are not entirely accurate since the majority of the population cannot buy US Dollars at the officially mentioned price, so possibly the “real” proportion is somewhat lower:
@BitcoinCom The price of BTC in USD equivalent of Toman is not 24,000. The confusion is due to the official price of USD set by the central bank of Iran. That price is not what you can exchnage USD with in the actual market. https://t.co/dAK98kwTmp
— EXIR (@EXIR_Official) September 6, 2018