Association law

Head of Iran’s Blockchain Association calls for special advice on crypto laws

According to Iran’s leading blockchain organization, authorities have been negligent in enforcing cryptocurrency laws. The association is concerned about the government’s inactivity and offers its assistance to regulators it deems ill-prepared to face such a difficult task.

Abbas Ashtiani, head of the Iran Blockchain Association (IBA), said Iranian regulators such as the Central Bank of Iran (CBI) are unable to regulate digital assets. The IBA has called for an “independent lawyer” to be appointed to take responsibility, according to a report by the Financial Tribune.

During a press conference held on Tuesday, Ashtiani explained;

“We need a special council of representatives from public bodies and private companies to develop regulations for cryptocurrencies. The CBI or the Security and Exchange Organization are not qualified [enough] to establish rules for cryptos given the multidimensionality of the problem.

Although bitcoin (BTC) mining is allowed in Iran, using crypto for payments is not. However, banks and licensed money changers are allowed to use digital currency generated by licensed miners in Iran to pay for imports.

Miners must obtain a license from the Ministry of Industry and pay their electricity bills, which are based on export prices. According to the most recent data from the beginning of this year, about 30 companies have obtained mining licenses in the country.

However, underground mining issues are still a problem in the country. As Cointelegraph reported on September 29, the CEO of the Tehran Stock Exchange resigned after discovering Bitcoin miners in the basement.

In response to government officials’ concerns about illegal activities related to cryptocurrency mining and trading, Ashtiani said that the Iran Blockchain Association understands lawmakers and assures them that their concerns will be taken into account:

“We stand ready to help establish rules that can help ensure a positive impact of cryptos on the economy while minimizing crime.”