Iran: New Crypto Law Requires Selling Bitcoin Directly to Central Bank to Fund Imports

Gold-plated souvenir Bitcoins. (AFP)
Gold-plated souvenir Bitcoins. (AFP)
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Iran: New Crypto Law Requires Selling Bitcoin Directly to Central Bank to Fund Imports

Gold-plated souvenir Bitcoins. (AFP)
Gold-plated souvenir Bitcoins. (AFP)

Iran has resorted to a new crypto currency regulation that required licensing bitcoin miners to sell their coins directly to the Central Bank for use to fund imports.

Reports published by bitcoins.com said the Iranian government has amended its crypto currency regulation to enable the country’s central bank to fund imports with bitcoin legally mined in the country.

Also, the IRNA news agency reported that the government has introduced those regulations in order to allow crypto miners to redirect their coins to the country’s finance mechanism for international trades.

“The Ministry of Energy is tasked with defining a ceiling for output of authorized crypto units subject to the energy consumed by each unit. Miners’ output should not exceed the ceiling,” the news agency wrote, adding that the central bank will soon announce details of the new law.

Meanwhile, the Mehr news agency quoted Mostafa Rajabi Mashhadi, deputy head of Iran’s Power Generation, Distribution, and Transmission Company (Tavanir) and the spokesperson for the power industry, as saying: “These crypto currencies can be exchanged according to the regulations set by the central bank.”

Presstv, an Iranian state-owned news network, said that miners are supposed to supply the original crypto currency directly and within the authorized limit to the channels introduced by the central bank.

“The legal cap for the amount of crypto currency for each miner would be determined by the level of the subsidized energy used for mining and based on instructions published by the Ministry of the Energy,” it said.

Crypto currency analyst Alireza Shamkhi told ISNA news agency that the new law is vague and ambiguous.

He said it does not state how the central bank will price crypto currencies or the exchange rate between dollars and rials.

Previously, miners could exchange their crypto currencies for dollars, rials or other currencies at market prices.

“The requirement for miners to report their output to the central bank is not seen in other industries, concluding that the new law will likely reduce the industry’s attractiveness and significantly lower miners’ profit margin,” said Shamkhi.

Iran has issued over 1,000 licenses to crypto miners, including one to the Turkish bitcoin mining giant Iminer.



Ukraine’s Zelenskiy Visits Sumy Region Bordering Russia’s Kursk Province

 Ukraine's President Volodymyr Zelenskiy attends a joint press conference with NATO Secretary General Mark Rutte, amid Russia's attack on Ukraine, in Kyiv, Ukraine October 3, 2024. (Reuters)
Ukraine's President Volodymyr Zelenskiy attends a joint press conference with NATO Secretary General Mark Rutte, amid Russia's attack on Ukraine, in Kyiv, Ukraine October 3, 2024. (Reuters)
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Ukraine’s Zelenskiy Visits Sumy Region Bordering Russia’s Kursk Province

 Ukraine's President Volodymyr Zelenskiy attends a joint press conference with NATO Secretary General Mark Rutte, amid Russia's attack on Ukraine, in Kyiv, Ukraine October 3, 2024. (Reuters)
Ukraine's President Volodymyr Zelenskiy attends a joint press conference with NATO Secretary General Mark Rutte, amid Russia's attack on Ukraine, in Kyiv, Ukraine October 3, 2024. (Reuters)

President Volodymyr Zelenskiy said on Friday he had visited the northern Sumy region, from where Ukraine launched a major incursion into the neighboring Russian Kursk region in August.

Almost two months into the surprise incursion, Kyiv's troops control swathes of Russian border territory, though the pace of the advance has slowed and Moscow's forces have begun to counterattack.

"It is crucial to understand that the Kursk operation is a really strategic thing, something that adds motivation to our partners, motivation to be with Ukraine, be more decisive and put pressure on Russia," Zelenskiy said on Telegram.

Shown alongside his top army commander, Oleksandr Syrskyi, visiting the 82nd Air Assault Brigade, the president thanked the military for defending Ukraine's territorial integrity.

He said the incursion, which Ukraine says is bringing war back to Russia, "has greatly helped" Kyiv to secure the latest military support packages from the West.

"We need to motivate the whole world and convince them that Ukrainians can be stronger than the enemy," he told the servicemen.

Zelenskiy added that he had held a meeting with his military command, which had discussed the front lines and the energy situation in the Sumy region. Russia has been pummeling regional electricity infrastructure, leading to power cuts.