Iranian president Hassan Rouhani discussed cryptocurrencies at the most recent meeting of the government’s Economic Coordination Board and told participants that regulatory policy is needed to protect consumers. Rouhani believes the Iranian government should “communicate the necessary laws and instructions” as soon as possible so dishonorable crypto businesses are avoided.
Regulation Necessary to Keep ‘Unprofessional’ Entries Out of Crypto Sector, Iranian President Hassan Rouhani Says
On Tuesday, Iranian president Hassan Rouhani made comments toward the cryptocurrency industry gaining ground in Iran and also warned retail investors about the possibility of “unprofessional” entries into this space. Overall, Iran has been friendlier toward crypto-assets and businesses like bitcoin mining than most countries. There have been some issues with electrical consumption, but one study indicates that Iran is leveraging bitcoin mining to lessen the effect of economic sanctions against the oil-rich nation.
Tuesday’s meeting of the government’s Economic Coordination Board shows Rouhani is concerned about the cryptocurrency space. Rouhani detailed that Iranian regulators need to monitor the ecosystem and further stressed to the country’s retail investors the risks involved with dishonorable crypto businesses. Rouhani
“For legalizing the activity of cryptocurrencies and protecting people’s capital in this area, we must think of a solution as soon as possible and lay down and communicate the necessary laws and instructions,” Rouhani remarked at the Economic Coordination Board meeting.
Iran’s Love and Hate Relationship With Bitcoin Mining
Last May, Rouhani instructed mining operations in the country to shut down until September 22. At the meeting, the Iranian president noted that authorities need to “cooperate with the media and cyberspace in the field of information, education and public awareness about this phenomenon and its instructions and laws.”
Two years ago, Chinese miners found extremely affordable electric prices ($0.006 per kilowatt-hour) but regulatory guidelines have seen miners deal with fluctuations. In mid-July 2020, Iran licensed 14 bitcoin mining farms and cut the electricity tariff. Following the licensure, power plants in Iran were authorized to mine crypto assets. Not too long after the authorization, the country gave bitcoin miners exclusive access to energy from three power plants.
Things have been up and down in Iran in regard to bitcoin mining in the country and Rouhani’s recent statements could be seen as neutral. Rouhani has served as the president for eight years and faces a chance of losing his seat in the near future.
What do you think about the Iranian president wanting to regulate the crypto industry in Iran? Let us know what you think about this subject in the comments section below.
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Author: Jamie Redman