Virtual currency law in Iran

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In 2018, Iran recognized cryptocurrency mining as a legal industry in order to monitor and regulate the mining farms that were already operating. [1] In July 2018, President Hassan Rouhani's administration declared its intention of launching a national cryptocurrency, a news agency affiliated with the Central Bank of Iran outlined multiple features of the national cryptocurrency, stating that it would be backed by the Iran's national currency, the rial. [2] The cryptocurrency could allow Iranians to make international transactions amidst trade embargo. As of December 2020 Iranians traded between $16 and $20 million in 12 different cryptocurrencies each day. [3] [4] [5] Iran's mining amount of bitcoin is close to $1 billion a year. [6]

Contents

Rial Currency

Rial Currency will be the digital currency of the Central Bank of Iran, which is considered as electronic cash and will be the electronic version of common banknotes in Iran. Its value is also attached to the existing traditional paper rial. According to the emphasis of the Central Bank of Iran, Rial Currency, unlike cryptocurrencies such as Bitcoin, cannot be mined and its supply will be regulated by this bank. "arzdigital news". 20 August 2022.[ citation needed ]

Sanctions

The Reuters news agency published a report that the leading crypto exchange Binance had processed $7.8 billion worth of transactions from Iranian firms since 2018 despite US financial sanctions. In this report, the relationship between Binance and Nobitex is discussed. [7] Nobitex has responded to the Reuters claim that the exchange was used to skirt sanctions against Iran in relationship with Binance. [8]

See also

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<span class="mw-page-title-main">Nobitex</span> Cryptocurrency exchange in Iran

Nobitex is Iran's largest crypto exchange. 87% of all funds, domestic and international, that transferred in Iranian exchanges in 2022 - equivalent to US$2.6 billion were don at nobitex.

References

  1. ↑ "Iran's muddled relationship with cryptocurrency is self-inflicted". Atlantic Council. 2020-06-18. Archived from the original on 2020-12-27. Retrieved 2020-12-27.
  2. ↑ Ratna, Tanvi. "Iran Has a Bitcoin Strategy to Beat Trump". Foreign Policy. Archived from the original on 2020-12-27. Retrieved 2020-12-27.
  3. ↑ Erdbrink, Thomas (2019-01-29). "How Bitcoin Could Help Iran Undermine U.S. Sanctions (Published 2019)". The New York Times. ISSN   0362-4331. Archived from the original on 2020-12-27. Retrieved 2020-12-27.
  4. ↑ "Iranians Warned To Be Wary As Daily Crypto-Currency Trade Reaches $20 Million". Iran International. 2020-12-04. Archived from the original on 2020-12-27. Retrieved 2020-12-27.
  5. ↑ Lerner, Barry (June 2018). "Regulation of Cryptocurrency". www.loc.gov. Archived from the original on 2020-12-27. Retrieved 2020-12-27.
  6. ↑ "Iran uses crypto mining to lessen impact of sanctions, study finds". Reuters. 21 May 2021.
  7. ↑ Berwick, Angus; Wilson, Tom; Berwick, Angus; Wilson, Tom (2022-11-07). "Crypto exchange Binance helped Iranian firms trade $8 billion despite sanctions". Reuters. Retrieved 2023-07-10.
  8. ↑ "Nobitex responded to the Reuters report regarding the relationship with Binance". ILNA. 2022-11-07. Retrieved 2023-07-07.


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