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Bitcoin trade in Iran awaits legal approval

Business Materials 3 July 2019 10:32 (UTC +04:00)

Tehran, Iran, July 3

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The crypto currency trade is becoming more talked about subject in Iran, while the government and the Central Bank of Iran has not approved legal instructions for mining.

Saeed Delirian, an expert in bitcoin trade, discussed the approach toward the crypto currency in Iran in an interview with Trend.

"The topic including mining has been discussed at a cabinet meeting in September 2018. Ministry of Industries, Mine and Trade has approved mining as an industry, so it was expected that the country imports necessary equipment for this purpose," he noted.

"However, the customs and the Central Bank of Iran (CBI) have not made any decision concerning imports of the equipment for mining, and the Energy Ministry has yet to determine the level of electricity consumption for mining," he added. "Due to high electricity consumption for mining, two factories in Yazd have been closed recently."

The expert emphasized there is no specific data base over number of the individuals that invested in crypto currency in Iran.

"As there is no relevant statistics, there is no legal infrastructure for implementing law by responsible organizations. It's important that the Central Bank, monetary policy makers and MPs discuss the issue," he said.

"The Central Bank of Iran has previously announced that Bitcoin can not be traded in the country since the national currency is rial, although as a digital currency, Bitcoin can be a suitable solution to bypass sanctions," he added.

"It has been more than a year that the related legal criteria is being compiled by CBI and stock exchange, but the legal process was not completed," said the expert.

In his words, large oil export revenues can be transferred to the country via Bitcoin. "The purchase and selling of crypto currency have increased, although individuals who enter this sector should be aware of risks, since 2015 till now the price of Bitcoin had fluctuation," he said answering whether demands for buying Bitcoin have increased in Iran.

"At the moment, the price of each Bitcoin is $11,200, while in 2014 the price was $200. It increased to $20,000 in two two years, but dropped in early 2018 to $3.200 and then increased to $14,000, " he noted.

"Whenever there is recession in other financial markets, the capital goes to Bitcoin and crypto currency. Investing in digital currencies depends on various factors, particularly on legal framework to be provided, if the country wants to facilitate this process. At the same time, political and international tensions will also affect investments in Bitcoin," he added.

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