Iran approves cryptocurrency mining

Iranian government authorises crypto currency mining as an industrial activity

After a cabinet session carried out on Sunday, 27 of July, 2019 and chaired by President Hassan Rouhani – the Iranian government gave an official nod to crypto mining as an industrial activity. The government stated that companies involved should take required licenses from the Ministry of Industry, Mine and Trade.

Commenting on the announcement Elyas Hazrati, Head of the Economic Commission of Iranian Parliament said: “We do believe that cryptocurrency industry should be recognised as an official industry in Iran to let the country take advantage of its tax and customs revenues“

The Iranian government warned companies and people involved in cryptocurrencies that they should accept its risks, especially because the government and the banking system will not provide any guarantees for them. It also notes that using digital money in domestic transactions is not allowed.

The government announced that crypto mining is taxable because it’s an industrial activity. In the case of export the companies don’t pay taxes but they are obliged to bring back revenue to the country.

This decision is considered as the first step toward legalising cryptocurrencies in Iran.

According to experts this step can be used as a solution to reduce the effects of US-imposed harsh economic sanctions against Iran.

“The gained income can be used for purchasing foreign exchanges under US sanctions to remove the difficulties we are faced with,” said Elyas Hazrati, Head of Economic Commission of Iranian Parliament.