Under the pretext of publishing the annual report of Nobitex exchange
As the cryptocurrency industry expands across the globe, Iran too is gaining an increasing number of fans. Although many countries have already implemented regulations in this area, Iran still faces obstacles due to the lack of legislation in the field. Bitcoin was the first cryptocurrency to be launched, and over the course of its 13 year existence, it has managed to gain many admirers worldwide. The primary purpose of launching cryptocurrencies was to remove the limitations of the traditional financial system, and with the help of blockchain technology, cryptocurrency transactions have been made more transparent and intermediary-free. The success of the cryptocurrency industry is due to the many advantages it offers to its users. Several cryptocurrency exchanges have been launched in Iran in the past few years, allowing people to exchange digital currencies.
What are the benefits of cryptocurrencies to Iranians?
In recent years, Iran has come under the pressure of American sanctions, severely limiting international trade. Cryptocurrencies provide an opportunity to bypass these sanctions, facilitating cross-border trade and financial transactions. However, legislation is needed in order to make use of cryptocurrencies, and while some countries have already implemented regulations, others are in the process of doing so. Iran has taken some steps in this field, but the regulatory environment of cryptocurrencies remains mostly unclear and there is no specific law in this regard.Therefore, it is necessary to create a legal framework for the use of cryptocurrencies in Iran. This legal framework should include financial regulations and rules for the use of cryptocurrencies in the country, as well as to protect the interests of investors and other users.
Are cryptocurrencies banned in Iran?
No, there is no specific law that prohibits cryptocurrencies in Iran. However, due to the decentralized nature of cryptocurrencies, people can still exchange digital currencies in various ways. This lack of legislation or prohibition has led to an increase in the number of people operating in the cryptocurrency market illegally and on underground platforms, as well as an increase in fraudsters. To protect the interests of investors and other users, it is necessary to create a legal framework for the use of cryptocurrencies in Iran. This legal framework should include financial regulations and rules for the use of cryptocurrencies in the country. Estimates show that there are currently more than 4 million active Iranian users in the field of cryptocurrencies. Now, all valid digital currency exchanges in the country operate by authenticating and receiving customer details, and hence the activities of individuals are known.
Nobitex 2022 report: In 2022, one million and 87 thousand people registered in Nobitex and joined Nobitex. At the end of this year, the number of users.Nobitex reached four million and 318 thousand people. The age of Nobitex users is 35 years and 22% of users are women.
The Cryptocurrency Mining Industry
The cryptocurrency mining industry was one of the first sectors that the policy makers entered. The main reason for this was the lack of energy and related issues. Bitcoin mining requires a significant amount of electricity, and in recent years, Iran has been facing a shortage of electricity, particularly in the summer season. With the increase in the price of cryptocurrencies and the increase in mining, the high electricity consumption of Bitcoin mining has become one of the main reasons for the lack of electricity in the country, resulting in more power outages. As a result, the Ministry of Energy entered this area and tried to control electricity consumption. Therefore, since 2018, a regulation for cryptocurrency mining was developed in the country, which underwent reforms over time. In the presented regulations, it was mentioned that people who intended to work in this industry should first obtain a license from the Ministry of Industry. Additionally, in order for the activists of this industry not to face the restrictions related to the lack of energy, they could use renewable energy or build energy production plants themselves. Activists could also increase their mining opportunities by investing in the optimization and saving plans of the Ministry of Energy, the use of flare gases, gas power plants separately from the grid, and electricity of the national grid during the days when the grid is not in critical conditions in terms of peak consumption. The new cryptocurrency mining regulations were announced by the first vice president at the end of November 2022. It seemed that in this regulation, more attention was paid to the activists in the field of cryptocurrency mining than in the past. According to the new regulation of cryptocurrency mining, there is no reduction in energy tariffs related to this area, but still, since the tariffs are calculated at the export rate, taxes and value added, as well as power supply costs, will no longer be added as they were in the past. However, when utility bills were issued for the activists in this field, it was observed that the charges for gas or electricity, along with value added and taxes, increased this cost. In the new resolution that was presented two months ago, it was seen that the legislator had clearly announced that the rate should be determined in such a way that the price announcement includes the costs of power generation, taxes, and value added, so that it becomes equivalent to the export average. Therefore, an additional 19 percent of taxes, energy supply, and added value are included in this export tariff. On the other hand, it was in January of 2023 that a new regulation was announced by the Ministry of Industry. In this regulation, it was announced that requests related to mining activists must be approved by the Ministries of Oil and Energy. In other words, all issuance of permits, renewal of establishment permits, and issuance of operating permits are subject to the response of inquiries from the Ministries of Oil and Energy. Furthermore, the holders of operating licenses and authorized farms are obliged to notify the service unit of the Ministry of Industry of any changes in equipment, assignment, or updates in the type and number of equipment in three-month intervals.
Importing with Cryptocurrencies
Recently, the government has taken action in the form of a resolution from the Central Bank of Iran regarding the use of cryptocurrencies for imports. According to this resolution, cryptocurrencies mined by centers with domestic licenses can only be used to pay foreign currencies for imports, and must comply with foreign currency laws related to imports in the country.
The Cyber Police Document on Cryptocurrencies
In December of 2022, the Iran Cyber Police (FATA) provided a document to cryptocurrency activists entitled "Cyber-Policy Requirements for Cryptocurrency Exchange Brokers". FATA Police divided the requirements of this document into five sections: administrative requirements, rial-cryptocurrency accounts, identity authentication, cryptocurrency exchange platforms, and law enforcement. This document has been met with criticism and surprise from some activists in this field. For example, one of the requirements states that a company with an exchange must be a general partnership. Another requirement prohibits companies from providing services in the field of cryptocurrency to foreigners. These requirements also state that if FATA police, after evaluations, reviews, and notices, concludes that the activities of the exchanges are not compliant with the spirit of these requirements, they will ask SHAPARAK(electronic payment network) to block their portals. Monopoly signs are also seen in the sector of providing security for active platforms in the field of cryptocurrency, since it has been announced that companies active in this sector must periodically, every six months, perform a security test by a "police-approved" evaluating company. Another strange thing about these requirements is that companies are required to keep all information related to the records of transactions and transactions of users in a secure manner for at least 10 years. This is also true for a company that has been dissolved. These requirements, which are spread across 13 pages, are, according to FATA police, aimed at companies providing cryptocurrency exchange services under the title of cryptocurrency exchange brokers. In the introduction of these requirements, it is emphasized that compliance with its provisions by cryptocurrency exchange brokers does not mean the granting of an official and legal activity license. It is also pointed out that the audience of this document is required to comply with all security attachments, notices, and orders issued by the governing and government institutions (law enforcement, supervision, banking) of the country.
Parliament's support for the legalization of cryptocurrencies
Parliament's support for the legalization of cryptocurrencies has been evident in recent years. Mohsen Alizadeh, a member of the Economic Commission of the Islamic Council, has advocated for the creation of a unified law for the field of cryptocurrencies. This would solve the problem of multiple institutions making decisions regarding the operation and regulations of the exchange and buying and selling of cryptocurrencies. Jabar Kochinejad, a member of the Parliament's Program and Budget Commission, has also suggested the 7th plan should include requirements for the use of cryptocurrencies, including mining, exchange and buying and selling. Moreover, Mojtaba Tavanger, head of the digital economy committee of the Islamic Council, has called for precise legal solutions for creating, publishing, maintaining and exchanging cryptocurrencies. Despite this support, the cryptocurrency industry still has a long way to go in terms of regulation.
