Iran relaxes crypto laws in bid to dodge US sanctions

In a bid to dodge US economic sanctions the Central Bank of Iran (CBI) will allow financial institutions to pay for goods and services using cryptocurrency from licensed Iranian crypto miners, reports CoinDesk.

This marks a widening of the rules which previously only allowed the CBI to pay for imported goods and services using cryptocurrency.

The Central Bank of Iran has announce that banks and licensed moneychangers can use cryptocurrency (read #Bitcoin) mined by authorized miners in Iran to pay for imports in order to circumvent US sanctions…

where were you when the petrodollar fell? https://t.co/CVa19Z6s2e https://t.co/vBK5SJKsLt

— Hanson Birringer (@HansonBirringer) April 27, 2021

Crypto mining proved popular in Iran due to the country’s government-subsidized energy supplies.

However, the Iranian government brought in a regulatory framework in August 2019 following strains on the country’s energy infrastructure. 

The regulations legalized the mining and holding of cryptocurrency but banned its use as a form of payment within the country. Previously Iranian crypto miners were required to sell all crypto generated to the CBI.

[Read more: Turkey’s central bank caused run on crypto exchanges, says former MP]

A Financial Tribune report cited by CoinDesk notes the CBI has notified money chargers and banks it would be relaxing rules restricting using cryptocurrency as payment.