Iranian legislators have proposed legislation that would prohibit the use of Bitcoin as a means of payment. 

Why Using Bitcoin As A Means Of Payment To Prohibit?

According to a July 2 report by Tasnim News Agency, the Iranian parliament has prepared an extra measure that forbids the use of any non-national cryptocurrencies for payments within the country.

Meanwhile, Iran intends to launch its cryptocurrency, which explains why it intends to prohibit using Bitcoin as a means of payment and other digital assets.

The Central Bank of Iran will oversee the local cryptocurrency market.

Turkey, likewise prohibited Bitcoin payments in April owing to “transaction risks,” although the country ranks high in cryptocurrency usage.

Miners’ Licenses

The Iranian measure requires cryptocurrency miners to get permits from the Ministry of Industry, Mine, and Trade before establishing mining farms.

The government gave authorization to 30 mining projects last week.

Because of widespread power disruptions, Iran placed a four-month moratorium on Bitcoin mining in May. Last month, the government allegedly hired spies from the Ministry of Intelligence to track down illicit mining farms that operate without a license.

According to the proposed legislation, miners will also apply for participation in the building of power plants and sell surplus electricity.

Iran will help mining businesses to increase their state income by $500 million a year beginning in March 2022. Miners will be required to report their holdings to the central bank.

Iran Prohibits Cryptocurrency Mining For Four Months Because Of Power Outages

For over 4 months, Iran has prohibited the energy-intensive mining of cryptocurrency. Many cities across the country are experiencing significant power outages. 

Since Donald Trump pulled out of a 2015 nuclear agreement with six other countries and reimposed sanctions, Iran’s economy has suffered.