Iran has passed legislation allowing cryptocurrency to be used as payment for imports. One such transaction, apparently worth $10 million, has already occurred in the country. Some claim that Iran is using cryptocurrencies to avoid the United States government’s sanctions.
The Iranian government has approved the use of cryptocurrency for imports. According to local media, Minister of Industry, Mine, and Trade Reza Fatemi Amin has introduced regulations governing cryptocurrency trade transactions. According to Amin, the law was comprehensive and addressed cryptocurrency regulation, the supply of fuel and power for mining, and the authorization to use cryptocurrencies.
One cited example was that local entrepreneurs may use cryptocurrencies instead of fiat currencies such as the US dollar to purchase autos. The report also stated that the first use of bitcoins for import orders had already occurred. This order was apparently valued at $10 million.
Some have claimed that Iran may be adopting cryptocurrencies to avoid US government sanctions. Other countries have been known to do the same, most notably North Korea, which is suspected of being behind multiple market hacks.
According to Iranian officials, smart contracts and cryptocurrencies will be widely used in overseas trade with target countries. Meanwhile, the United States is developing legislation and safeguards to prevent the cryptocurrency market from being exploited for criminal purposes.
According to Reuters, Iran accounts for 4.5% of worldwide bitcoin mining. As a result, the country has received hundreds of millions of dollars.
In Iran, cryptocurrency has a long history. The country has passed mining regulations, which have proven to be fairly popular. However, Iran has highly stringent mining regulations and has taken harsh measures against any unlawful mining activities.
All of this cryptocurrency-related activity has piqued the interest of US officials. The US Treasury Department is looking into the Kraken exchange for allegedly breaking sanctions. The exchange allegedly breached sanctions by allowing Iranian consumers to use its services, according to a New York Times article.
The country first refused to recognize cryptocurrencies as legal tender and was adamant about it. Iran, like many other countries, is anticipated to develop its own central bank digital currency (CBDC).
