Iran Now Accepts Cryptocurrency Mining As A Legitimate Industry, Local Sources Report

  • Iran's government has reportedly accepted cryptocurrency mining as a legitimate industry.
  • This news comes shortly after Iran revealed that it has completed the development of its national cryptocurrency.
  • Presumably, only government-approved organizations may conduct cryptocurrency mining in Iran since the nation has not yet clarified its stance regarding cryptocurrencies.

IBENA, an Iranian news agency focusing on banking and local economic developments, recently revealed that cryptocurrency mining has been approved as an industry in Iran.

Over the last few months there have also been reports of Iran working on developing a state-backed digital currency.

Clarified Stance On Cryptos Expected By End Of September

According to Abolhassan Firouzabadi, the Secretary of Iran’s Supreme Council of Cyberspace, the National Cyberspace Center has been working closely with the nation’s central bank on managing crypto-related activity in the country.

The Iranian government’s announcement noted that the nation’s central financial institution will serve as a “trustee in [the] foreign exchange area” and as a “decision-making authority” in outlining the framework and policies for the “trade and participation of [local cryptocurrency] startups.”

Iran’s central bank is expected to announce its “definitive” stance on cryptocurrencies toward the end of the month. Firouzabadi also confirmed that the country’s national cryptocurrency will be used as “a financial transaction instrument with Iran’s trade partners”, in order to bypass US-led economic sanctions on the so-called rogue state.

Crypto Mining Officially Approved As Industry

Moreover, IBENA provided important details regarding the acceptance of crypto mining as a legitimate industry in Iran. The local news agency, which is reportedly affiliated with the central bank of Iran, wrote,

“[cryptocurrency] mining like bitcoin has been accepted as an industry in the government and all related organizations to the mining such as Ministry of Communications and Information Technology, Central Bank, Ministry of Industry, Mining and Trade, Ministry of Energy, as well as Ministry of Economic Affairs and Finance have agreed it, but the final policy for legislating it hasn't been declared yet.”

IBENA (Iranian news outlet)

Presumably, only government-approved agencies and organizations might be authorized to engage in mining digital currencies, considering that local citizens are still prohibited from engaging in crypto-related activity. However, there have still been reports of Iranian residents who are trading and investing in cryptocurrencies.

In most countries that have banned or restricted cryptocurrency trading such as India and China, local crypto traders have found ways to buy and sell cryptos mainly by using peer-to-peer (P2P) or over-the-counter (OTC) trading options.

Global Task Force, U.S. Tax Agency, SEC Dominate Crypto Headlines

Regulations are ruling the crypto headlines so far this week. Over the past 24 hours, we’ve learnt the Financial Action Task Force (FATF) is reportedly set to finalize new international standards for regulating cryptocurrency firms next month. The commissioner of the Internal Revenue Service (IRS) has stated his agency has “made it a priority” to issue more comprehensive crypto tax guidance “soon.” Finally, the U.S. Securities Exchange Commission (SEC) announced it would delay, once again, its decision on the VanEck and SolidX Bitcoin exchange-traded fund (ETF) proposal.

At the time of writing, bitcoin (BTC) and ether (ETH) are trading at $7,945.4 and $252.9; a 0.54% and 0.83% jump over the past 24 hours, respectively. As for the MVIS CryptoCompare Digital Assets 10 Index, it is currently tracking at 3,822.7 (-0.6%).

Global Standards for Regulating Crypto Firms Next Month

According to reports from CoinDesk, the FATF is set to finalize new international standards for regulating cryptocurrency firms next month. These standards, they report, are widely expected to subject crypto exchanges, wallet providers, and other businesses to the “travel rule” – a colloquial term given to a rule found in the Bank Secrecy Act (BSA) that requires all financial institutions to pass on certain information to the next financial institution, in certain funds transmittals involving more than one financial institution.

Introduced in 1996 in the U.S., the “travel rule” is designed to help law enforcement agencies detect, investigate, and prosecute money laundering and other financial crimes by preserving an information trail about persons sending and receiving funds through funds transfer systems. The arrival of such international standards would go beyond the basic know-your-customer requirements that are widely enforced in the crypto space at present.

IRS Commissioner: More Detailed Crypto Tax Guidance ‘A Priority’

According to letter from IRS Commissioner Charles P. Rettig dated May 16, the agency has “made it a priority” to issue a more comprehensive tax guidance for cryptocurrencies. The Commissioner’s letter was written in response to a request from 21 Congressmen to provide clarity on tax treatment in relation to cryptocurrency holdings.

In 2014, the U.S. tax agency issued a guidance for cryptocurrency. In his May 16 response letter, Rettig revealed the IRS will “soon” issue more robust guidance. “I share your belief that taxpayers deserve clarity on basic issues related to the taxation of virtual currency transactions,” the Commissioner wrote.

SEC Delays Decision on VanEck SolidX Bitcoin ETF

The SEC announced the postponement of a decision regarding the VanEck SolidX bitcoin ETF proposal. The postponed ETF proposal was initially filed over a year ago. In January – amid the U.S. Government shutdown – it was withdrawn, only to be resubmitted later that month. On March 29, the commission delayed the joint proposal for the first time. The SEC must announce its decision – or, for the final possible time, postpone its decision – on the proposed bitcoin ETF no later than August 19.

Notably, the U.S. investor watchdog is seeking comments from the public in relation to the proposed VanEck SolidX bitcoin ETF. To guide commentary, they included fourteen questions in Monday’s filing. Comments must be submitted within the following 21 days, whilst rebuttals to said comments are due within the next 35 days.