Iranian President Cautions Against ‘Unprofessional Entry’ Into The Crypto Space

Iranian President Cautions Against ‘Unprofessional Entry’ Into The Crypto Space

Crypto regulation seems to be gaining traction across the globe. The latest is the Middle East nation Iran whose president has called for close monitoring of the burgeoning industry.

Crypto Regulation Needed As Soon As Possible

Iranian President Dr. Hassan Rouhani has cautioned crypto investors about unprofessional entry into the nascent industry in an official release. This was during the recently concluded Economic Coordination Board meeting.

Speaking further about digital currencies and cryptocurrencies, Rouhani noted that an economic intelligence program is a necessity, and the oil-rich nation must pay attention to the legal and technical requirements surrounding virtual currencies.

According to him, regulatory bodies must come up with a framework as soon as possible to guide investors looking to enter into the crypto space as that is the only way cryptocurrencies could be legalized.

He further admonished capital market regulators to work closely with experts in the field and undertake public awareness in passing across its laws and guidelines.

However, he maintained his stance against crypto mining in the country, stating that Bitcoin mining would be allowed starting from the summer, and any Bitcoin farms operating before the stated time will have their power disconnected.

According to the Tehran Times, Iran has also declared home crypto mining illegal, banning the practice.

Adding to the anti-crypto mining measure, the Iranian government said defaulters would have to pay for potential damage to the national grid.

The Middle East nation has been the home of about 4.5% of the global Bitcoin mining community and has only begun to take countermeasures against the industry during recurring power outages around the country.

Facing a trade deficit following sanctions by the US on its nuclear program, Iran had turned to BTC mining to buy goods from neighboring countries and lessen the impact of the trade embargo.

Iran Positioned For BTC Miners Outpour

Iran in itself is not against cryptocurrencies. It authorized the use of the digital assets by banks operating in its territory and licensed moneychangers to pay for imports, but the recurrent blackouts have seen the country reconsider its position.

Asian giant China has played the antagonist to Bitcoin, starting by banning initial coin offerings (ICO) in the country, leading to the migration of crypto projects and exchanges from the country in 2017.

Four years later, the Chinese government is swinging the hammer on crypto mining in its Inner Mongolia region, citing environmental concerns as the reason. Furthermore, it banned financial institutions from accepting cryptocurrencies as payment for services plunging the crypto market 50% of its all-time high.

This stance has seen about half of the world’s BTC mining community left without a choice but to seek crypto-friendly climes to ply their trade.

Iran could benefit from this miner outpour if Bitcoin mining moves to renewable energy. The country’s low energy consumption is a major attraction for BTC miners.

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Author: Jimmy Aki

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