Iran has officially approved the use of cryptocurrency in imports as a means of circumventing US sanctions.
Iran allows the import of goods in crypto
Iran has approved the use of cryptocurrency to trade and import goods, according to Industry, Mines and Trade Minister Reza Fatemi Amin.
Local businesses have been given the liberty to import cars and other items using cryptocurrencies instead of the US Dollar or other fiat currencies which gives the country a method to bypass sanctions imposed by the US https://t.co/DyFuyALwh0— Intl. Business Times (@IBTimes) August 30, 2022
The approval acts as a way to "evade" US sanctions imposed on the country's financial and banking sectors.
According to Amin, the regulations on using cryptocurrencies instead of USD and euros were “closed” by the authorities on August 28. “All matters related to crypto, including fuel and power delivery, as well as designations and permits have been fully issued,” he added.
Back earlier this month, Iran placed its first import order to be paid for in crypto, worth $10 million. This is seen as an unexpected move, a test to allow the country to trade digital assets beyond the global financial system, as well as to facilitate trade with similar embargoed countries. by US sanctions.
“By the end of September, the use of crypto and smart contracts will be widely deployed in foreign trade with the target countries,” said Alireza Peymanpak, Iran's Deputy Minister of Commerce, head of the Organization for the Promotion of Trade. Iran (TPO) confirmed.
Iran's stance on cryptocurrencies
Iran's cryptocurrency penetration, exposure and acceptance time is quite complicated. In 2019, the central bank of Iran banned crypto trading in the country, but the government still allows the use of cryptocurrencies, such as bitcoin, to pay for imports. In fact, Iran has been revealing its plans to include crypto in foreign trade payments for over a year and officially confirmed it in early 2022.
Looking at the mining industry, the scope is quite "biased" by Iran. The Iranian government approved this activity as an official industry in 2019. To date, the Ministry of Industry, Mines and Trade has issued more than 1,000 licenses to cryptocurrency mining units/organizations. But in November 2021, Iran ordered mining companies Bitcoin shut down and confiscated more than 9,000 illegal mining rigs from March 2022, as many illegal miners put pressure on the national grid. Since then, associations in Iran have repeatedly called for a general crypto regulatory framework.
On the other hand, the US sanctions have caused a lot of damage to the Iranian economy, weakening the national currency, which is also the reason why cryptocurrency has become popular in the country. According to a recent estimate, Iran has more than 12 million people holding crypto.