Iran’s association of importers have now called for regulatory framework for cryptocurrency. This is after the Iranian government has officially used crypto to pay for the imports. In order to continue paying for imports with digital asset a regulation needs to mandated.
The head of Iran’s Importers Group and Representatives of Foreign Companies (Import Association) Alireza Managhebi, has been emphasizing on the need for concrete and stable regulation.
It is a much required practice which has to be given its due importance if Iran were to continue digital asset payments for the imports.
A government official quoted,
By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries.
Managhebi mentioned that digital assets could become extremely useful if received a right regulatory infrastructure, he further stated,
The question is, has the government developed consistent regulations for the cryptocurrency uses so that they will not change within two months and the businessmen active in this field will not be harmed?
Possible Threat If Crypto Payments Continue For Iran Imports
Managhebi also was of the belief and expressed certain doubts that the official digital asset usage for imports can soon end the dollar dominance in the Iranian market. This could bring in a possible threat that the new crypto payment method could lead to the beginning of rent-seeking business groups.
The association mentioned,
It is absolutely necessary to educate and train people to use this new technology in Iran as well as have stable regulations in this regard
Earlier in this month, Iran had placed the first international import order with the help of $10 million worth of cryptocurrency.
The details about the deal has not been disclosed by the officials that involved the amount of digital asset used or even the amount of imported goods involved. It was mentioned that $10 million order had represented the first of many such international trades that shall be conducted with the help of cryptocurrency.
Iran Is Gearing Up For End Of September
Iran had plans of embracing digital asset ever since 2017. In October 2020, it had amended previously issued legislation which would be allowing cryptocurrency to be used to carrying out imports.
Last year June, the Iranian Trade Ministry has issued 30 operating licenses to Irani miners to mine cryptocurrencies which was supposed to sold to Iran’s central bank.
The nation is now using these mined coin for the payments related to imports. Iran is supposedly expecting that by the end of September, the use of digital asset and also smart contracts shall be adopted and will be widespread in trade with target countries.
In other developments related to Iran and its attempt to regulate the industry, authorities in Iran have continued to seize illegal mining rigs in Tehran over the past few months.
Featured image from on Unsplash.com, charts from TradingView.com
