In an effort to increase trade within the nation, Iran’s Trade Ministry has approved the use of cryptocurrency payments for imports.
In light of ongoing international trade sanctions, Iran’s Ministry of Industry, Mines, and Trade has authorized the use of cryptocurrencies for imports into the nation.
The country’s trade minister, Reza Fatemi Amin, reportedly confirmed that comprehensive regulations outlining the use of cryptocurrencies for trade and providing fuel and electricity to Bitcoin (BTC) and cryptocurrency miners in the nation have been approved.
A week after the nation had made its first-ever import order for vehicles worth $10 million using cryptocurrency as a payment method, Amin explained the regulatory change at an automotive industry exhibition on Sunday. By September 2022, the use of cryptocurrencies and smart contracts would be pervasive in international trade, according to previous predictions from the Iranian trade ministry.
Iran’s Import Association demanded clear regulatory guidelines in the wake of the cryptocurrency-funded import to prevent local companies and importers from being constrained by ambiguous regulations.
The minister stated that all aspects of cryptocurrencies are covered by the new regulations, including the procedure for granting licenses and the provision of fuel and energy to local mining companies.
Local businesses will reportedly be able to pay with cryptocurrencies rather than US dollars or euros to import vehicles and a variety of other imported goods into Iran.
Opposition to Iran’s nuclear program has led to international trade sanctions against the country, effectively cutting it off from the world banking system.
Given the decentralized nature of public blockchains like Bitcoin and Ethereum, which are not controlled by government or central authorities, Iran has since turned its attention to adopting cryptocurrencies as a way to address and possibly bypass sanctions for imports.
In June 2021, the Iranian Ministry of Industry, Mines, and Trade issued operating licenses to 30 cryptocurrency mining facilities nationwide, and more than 2,500 applications for new mining operations received approval. To relieve pressure on its national grid in the months that followed, the government also cracked down on unauthorized mining operations and even imposed a three-month mining ban.