Iran To Allow Usage Of Crypto For Imports Despite US Sanctions
- Iran is allowing businesses to use crypto as a payment in the processing of imports and thus circumventing multiple United States-imposed sanctions over its nuclear program.
- The Ministry of Industry introduced the law after an agreement with the Central Bank of Iran, as per Minister of Industry, Mine, and Trade’s Reza Fatemi Amin.
Iran, the country with massive potential for crypto miners and investors, seems to be fond of the industry these days. As per a recent report by the semi-official Iranian news agency, Tasnim, the country is allowing businesses to use crypto as a payment in the processing of imports and thus circumventing multiple United States-imposed sanctions over its nuclear program.
Monday’s report quotes the Minister of Industry, Mine, and Trade’s Reza Fatemi Amin who stated that the ministry introduced the law after an agreement with the Central Bank of Iran. According to the deal, imports can be processed with the use of digital currencies.
On Sunday, while speaking at an exhibition on the automotive industry, Amin stated that the detailed law being drafted by the officials aspires to regulate the cryptocurrency market while also assessing the supply of fuel and electricity for cryptocurrency mining and crypto adoption in particular areas.
According to the report, local businesses have been given permission to import cars and other goods using cryptocurrencies instead of the U.S. dollar, Euro, or other fiat currencies. This provides a method for the country to evade sanctions imposed by the United States.
Iran adopts crypto
According to the report, Alireza Peymanpak, a deputy Iranian trade minister who also serves as the head of Iran’s Trade Promotion Organization (TPO), stated that by the end of September, cryptocurrencies and smart contracts would be extensively used in foreign trade with the target countries.
Notably, the first import order utilizing cryptocurrency was recorded on August 9 and had a value of approximately $10 million.
Notably, U.S. regulators have recently raised concerns about the use of cryptocurrency as a means of evading sanctions, stressing the likelihood that heavily sanctioned Russian entities may be using the technology to lessen the impact. Iran might now be considering doing the same.
In fact, it was reported in 2020 that the head of Khatam-al Anbiya Construction, an engineering company under the leadership of the Iranian Revolutionary Guard Corps, a division of the Iranian Armed Forces, advocated the use of cryptocurrency to circumvent sanctions.
It is important to note that after Iran’s nuclear agreement with the global community, the United States placed sanctions against it that were later tightened earlier in 2018.
Iran is a major crypto mining hub, but the government recently seemed a bit tough on the miners in the region. In June, ahead of peak season, Iran cut power to crypto mining farms. It has introduced heavy sanctions for illegal miners in the region.