Iran joins the growing list of countries looking for a revamp in their cryptocurrency regulations

Iranian lawmaker, Mohammad Hossein Farhangi, has wanted that ignoring the potential benefits of Bitcoin could be a missed opportunity for the economic revival of the country. According to Tasnim News Agency, Farhangi, the representative of Tabriz in the Islamic Consulative Assembly of Iran, is fighting for government action to provide greater investment and regulation of cryptocurrencies.

In a session, attended by Iran’s Central Bank Governor, Abdolnaser Hemmati, Farhangi stated that cryptocurrencies “can be a good opportunity for the country, otherwise it will become a matter for financial and credit institutions.” He further asked the central bank governor to “take the issue of Bitcoin seriously.”

The Iranian lawmaker also raised his concern over placing cryptocurrency under the remit of the Ministry of Industry and Mining. He argued that Bitcoin, along with other digital assets, should come under the control of Iran’s central bank.

Nevertheless, Farahangi was quick to caution parliament on the recklessness of permitting cryptocurrencies without establishing well-defined policies. He declared that porous or weak policies could endanger liquidity management protocols and monetary control policies.

Farhangi’s appeal to the Iranian Government comes in light of President Hassan Rouhani’s call for a clear-cut national policy regarding cryptocurrency mining. Iran legalised crypto mining in September 2019, making it one of only a few countries in the world to require a cryptocurrency mining license for mining activities.

However, regulation has not made Iran as crypto-friendly as one might expect. While the government broadly agrees on the benefits of cryptocurrency and digital assets, it is less favourable to trading services.

Despite providing tax breaks to its local cryptocurrency mining operations, Iran has prohibited trading and in May classified crypto trading as a form of money laundering.

Iran joins lawmakers across the world such as China, the US and those in the EU that have pushed for reviewing knee-jerk regulations introduced in recent years.