Iran Adopts Crypto Trading And Imports

Аuthorities in Iran has authorized the use of cryptocurrencies for trading and importing products, according to the country’s Minister of Industry, Mines and Trade, Reza Fatemi Amin. The approval is a big step towards crypto adoption in Iran, as allowing crypto trading and imports can successfully bypass U.S. sanctions.

It turns out that Iran’s government has approved a new law, which authorizes local businesses to use cryptocurrencies for imports. Furthermore, the new law is introducing new regulations on trade transactions with digital assets, officially approving the use of digital assets for the import of goods and items.

Previously, in order for Iran to place any orders on imports, they had to be denominated either in U.S. dollars or in euros. Now, commerce in the import of goods, especially automobiles, can be carried out via crypto payments.

The United States has put Iran on the list of sanctioned nations because of the country’s ongoing development of nuclear weapons. However, the Iranian government may dodge those sanctions just like Russia, which is rumored to have carried out some of its transactions over to the crypto realm.

Moreover, earlier in August Iran placed its first official import order, worth around $10 million, using cryptos instead of fiat. The move, despite being a pilot, enabled the nation to exchange digital assets without involving the international financial system, which is a perfect instrument for evading sanctions.

“By the end of September, the use of cryptocurrencies and smart contracts will be widely used in foreign trade with target countries," Alireza Peymanpak, a deputy Iranian trade minister stressed.

Iran faces another set of sanctions

Iran’s shift towards cryptos may seem strange, but recently the U.S. announced sanctions on a network of companies accused of helping Iran to deliver and sell its petroleum and petrochemical products to East Asia. This puts the country back on top of the “Most sanctioned countries” list, even way ahead of Russia, which was expelled from SWIFT among numerous other financial bans. 

However, U.S. lawmakers are trying to figure out ways of sanctioning Russia’s crypto market, so Iran could soon find yet another ban on its list.

Crypto trading is legal, but mining is still in the gray

Despite Iran franticly trying to get around the imposed sanctions, a big chunk of the crypto community in the nation felt the wrath of regulators, as, since March 21, 2022, over 9,000 illegal crypto-mining equipment have reportedly been taken by Iranian police. Furthermore, crypto mining in Iran seems to be intensive, as the nation’s power system failed on several occasions due to overloading.

However, the new situation may open the doors to crypto miners, since Iran is setting an eye on cryptos as a tool, rather than a problem, as the sanctions undermined the national currency, and gave cryptocurrencies a widespread acceptance in the nation.