Iran To Ban Ethereum

Across Asia, the feeling towards cryptocurrency is rather positive, though this doesn’t mean that all countries on the continent are following the trend. Recent reports suggest that Iran have recently taken steps to ensure that cryptocurrency trading in Iran is to become illegal. This means that the purchase and trade of cryptocurrencies like Ethereum and Bitcoin is to become against the law.

According to FXStreet:

“The Cabinet of Ministers of Iran has approved the bill that made cryptocurrency trading illegal on the territory of Iran. Meanwhile, crypto mining is considered as eligible industrial activity, the local media outlet PressTV reports. According to the adopted legislation, cryptocurrencies are not considered as a legal tender, and the central bank of Iran will not guarantee or back up their value. Transactions with digital currencies and cryptocurrency trading are also deprived of official approval.”

This is interesting because whilst trading has become illegal, the mining of cryptocurrency has not, and the government has taken measures to ensure that mining is able to continue, despite the trade of cryptocurrencies being made illegal. It’s worth noting however that miners will have to operate under very strict regulations and will also have to pay a higher tariff on their energy bills:

“Notably, Iran recently approved cryptocurrency mining provided that companies and individuals engaged in such activity comply with certain requirements. Thus, miners will have to get the approval of the local Ministry of Industry. Also, it is forbidden to mine cryptocurrencies within the 30-km border of all provincial centers, except for Tehran and the city of Isfahan. More stringent restrictions will be applied to these large cities.”

As we understand it, whilst the trade of cryptocurrency has been made illegal (technically) this is just a technicality and that the change in the law referring to the trade of cryptocurrencies has actually been established to ensure that the government can’t be held responsible for the trade of cryptocurrency, because it’s not recognised as legal tender, therefore, any problems that arise as a result of Bitcoin and cryptocurrencies can’t be the fault of the government. In short, if you want to trade cryptocurrency, do so at your own risk… at least that’s what the reports suggest the government are saying.

This is a story to keep a keen eye on as movements in Iran will have an impact on the cryptocurrency markets over all on a global scale. Hopefully as the story develops, the legality of crypto in Iran will become more clear over the coming weeks.