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.



Blinken Meets China’s Wang after Chiding Beijing’s ‘Escalating Actions’ at Sea

US Secretary of State Antony Blinken speaks at the 57th ASEAN Foreign Ministers' Meeting at the National Convention Center, in Vientiane, Laos, July 27, 2024. (Reuters)
US Secretary of State Antony Blinken speaks at the 57th ASEAN Foreign Ministers' Meeting at the National Convention Center, in Vientiane, Laos, July 27, 2024. (Reuters)
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Blinken Meets China’s Wang after Chiding Beijing’s ‘Escalating Actions’ at Sea

US Secretary of State Antony Blinken speaks at the 57th ASEAN Foreign Ministers' Meeting at the National Convention Center, in Vientiane, Laos, July 27, 2024. (Reuters)
US Secretary of State Antony Blinken speaks at the 57th ASEAN Foreign Ministers' Meeting at the National Convention Center, in Vientiane, Laos, July 27, 2024. (Reuters)

US Secretary of State Antony Blinken met his Chinese counterpart Wang Yi on Saturday during a regional summit in Laos, hours after criticizing Beijing's "escalating and unlawful actions" in the South China Sea.

Blinken and Wang shook hands and exchanged greetings in front of cameras but made no comments before moving to closed-door talks in what will be their sixth meeting since June 23, when Blinken visited Beijing in a significant sign of improvement for strained relations between the world's two biggest economies.

Though Blinken had singled out China over its actions against US defense ally the Philippines in the South China Sea during a meeting with Southeast Asian counterparts earlier on Saturday, he also lauded the two countries for their diplomacy after Manila completed a resupply mission to troops in an area also claimed by Beijing.

The troop presence has for years angered China, which has clashed repeatedly with the Philippines over Manila's missions to a grounded navy ship at the Second Thomas Shoal, causing regional concern about an escalation.

The two sides this week reached an arrangement over how to conduct those missions.

"We are pleased to take note of the successful resupply today of the Second Thomas shoal, which is the product of an agreement reached between the Philippines and China," Blinken told ASEAN foreign ministers.

"We applaud that and hope and expect to see that it continues going forward."

GAZA SITUATION 'DIRE'

Blinken and Wang attended Saturday's security-focused ASEAN Regional Forum in Laos alongside top diplomats of major powers including Russia, India, Australia, Japan, the European, Britain and others, before heading to their meeting.

Blinken said earlier the United States was "working intensely every single day" to achieve a ceasefire in Gaza and find a path to more enduring peace and security.

His remarks follow those of Indonesian Foreign Minister Retno Marsudi, who said the need for sustainable peace was urgent and international law should be applied to all. The comment from the world's largest Muslim-majority nation, was a veiled reference to recent decisions by two international courts over Israeli's Gaza offensives.

"We cannot continue closing our eyes to see the dire humanitarian situation in Gaza," she said.

More than 39,000 Palestinians have been killed in the fighting in Gaza since Israel launched its incursion, according to Palestinian health authorities, who do not distinguish between fighters and non-combatants.

Israeli officials estimate that some 14,000 fighters from armed groups including Hamas and Islamic Jihad, have been killed or taken prisoner, out of a force they estimated to number more than 25,000 at the start of the war.

The war began when Hamas fighters attacked Israel on Oct. 7, killing 1,200 people and abducting some 250 others, according to Israeli tallies.

Also in Laos, Russia's Foreign Minister Sergei Lavrov said guidelines on the operation of US nuclear assets on the Korean peninsula were certain to add to regional security concerns.

Lavrov, according to South Korean news agency Yonhap, said he had not been briefed on the details of the plan, which was of concern to Russia.

"So far we can't even get an explanation of what this means, but there is no doubt that it causes additional anxiety," Russia's state-run RIA new agency quoted him as saying.

'THIS IS NOT SUSTAINABLE'

Ahead of Saturday's two summits, Australian Foreign Minister Penny Wong urged Myanmar's military rulers to take a different path and end an intensifying civil war, pressing the generals to abide by their commitment to follow ASEAN's five-point consensus peace plan.

The conflict pits Myanmar's well-equipped military against a loose alliance of ethnic minority rebel groups and an armed resistance movement that has been gaining ground and testing the generals' ability to govern.

The junta has largely ignored the ASEAN-promoted peace effort, and the 10-member bloc has hit a wall as all sides refuse to enter into dialogue.

"We see the instability, the insecurity, the deaths, the pain that is being caused by the conflict," Wong told reporters.

"My message from Australia to the regime is, this is not sustainable for you or for your people."

An estimated 2.6 million people have been displaced by fighting. The junta has been condemned for excessive force in its air strikes on civilian areas and accused of atrocities, which it has dismissed as Western disinformation.

ASEAN issued a communique on Saturday, two days after its top diplomats met, stressing it was united behind its peace plan for Myanmar, saying it was confident in its special envoy's resolve to achieve "an inclusive and durable peaceful resolution" to the conflict.

It condemned violence against civilians and urged all sides in Myanmar to cease hostilities.

ASEAN welcomed unspecified practical measures to reduce tension in the South China Sea and prevent accidents and miscalculations, while urging all stakeholders to halt actions that could complicate and escalate disputes.

The ministers described North Korea's missile tests as worrisome developments and urged peaceful resolutions to the conflicts in Ukraine, as well as Gaza, expressing concern over the dire humanitarian situation and "alarming casualties" there.