Iran Embraces Crypto Regulation to Drive Economic Growth and Innovation
The Central Bank of Iran (CBI) has announced a regulatory framework to govern the cryptocurrency industry. This decision positions the CBI as the primary regulator, aiming to balance oversight with economic growth. The framework focuses on licensing brokers and custodians while enforcing anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
Iran Focuses on Crypto for Economic Growth
Under the new framework, the CBI will regulate Irans cryptocurrency sector. It will issue licenses to brokers and custodians to ensure compliance with AML and crypto tax laws. Additionally, the CBI plans to collaborate with the Ministry of Finance to support industry growth.
Governor Mohammadreza Farzin emphasized leveraging cryptos potential while managing risks. He stated that the framework aims to responsibly integrate digital assets into Irans economy. Farzin added that the central bank would work closely with stakeholders to foster innovation in the sector.
The government intends to use digital assets to support economic development. Minister of Economic Affairs Abdolnasser Hemmati said, Managing risks while capitalizing on cryptos benefits can help the economy grow. He also encouraged stakeholders to form a unified association to strengthen collaboration.
New Crypto Rules Focus on Economic Integration
The regulatory framework aims to utilize crypto for job creation and international trade amid economic sanctions. Iran has previously used digital assets to settle trades and bypass financial restrictions. The new rules expand oversight beyond mining, integrating crypto into broader economic activities.
Hemmati acknowledged that restrictions on cryptocurrencies have been ineffective, urging a shift toward risk management. He highlighted cryptos potential for generating income and strengthening Irans digital economy. Moreover, the government plans to ensure the framework aligns with international standards.
Iran legalized crypto mining in 2019 under strict conditions, including higher electricity tariffs and mandatory asset sales to the government. However, the government temporarily halted mining during energy crises, but later allowed its resumption. The new framework represents a more comprehensive approach to crypto regulation.
Strict Crypto Oversight Aims to Attract Investment
The updated regulations mark a step toward aligning Irans financial system with international crypto practices. The CBI will monitor compliance to prevent illegal activities while promoting transparency in the sector.
By legalizing crypto mining and trade under strict oversight, Iran hopes to attract investment. The government views the sector as an opportunity to mitigate the impact of sanctions. Policymakers are optimistic that a regulated crypto market can spur economic growth.
Read more: https://www.tronweekly.com/iran-embraces-crypto-regulation/
Text source: TronWeekly
