Iran Seemingly intends To Ban the Utilization of Foreign-Mined Cryptocurrencies within its Borders

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As per the Iranian news outlet, Iran International, the country’s central bank announced this past Wednesday the particular decision made by the Cabinet to ban foreign-mined digital assets as a viable form of payment within Iran. According to them, digital currencies circulating within the country must also be mined inside its territories and not from outside sources.

Given the degree of Iran’s decision, many have now since pointed out that such enforcement against foreign-mined cryptos is more than unlikely ever to pass. However, others also believe – including blockchain advisor and expert Fatemeh Fannizadeh – that the ban may not be intended for individuals. Instead, it may be targeting forex entities and banks using cryptos as import payments.

Perhaps this has something to do with the Central Bank of Iran’s earlier sanctioning for banks and other monetary institutions to utilize crypto as means for import. Under the particular regulation, such entities are enabled to utilize cryptocurrencies for their purchases as long as it has been mined inside Iran itself, thus connecting the two aforementioned regulations.

While Iran believes that establishing a state-sanction crypto import payment pipeline is indeed the correct path forward, its actual relationship with such assets has been somewhat unstable for the past few months. Nonetheless, industry experts firmly believe that the use of cryptocurrencies as means for import transactions could be a good way to rectify the country’s downright crippling economic consents. Whether limiting such to state-mined cryptos is a good move or not, only time could tell.

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