Iran is currently in a severe recession and financial turmoil amid the COVID-19 pandemic. In response to a critical economic instability and high inflation, the government of Iran amended a new crypto ruling last week enabling the country’s central bank to fund its international trade with Bitcoin legally mined from the country. The move intends to curb the increasing number of sanctions placed on Iran by the government of the U.S.
Last week, Iran’s state-backed news agency IRNA reported that its cabinet ministry amended cryptocurrency legislation based on a joint proposal by the CBI and the Iranian Ministry of Energy.
Authorities in Iran are still trying to figure out how this can be properly implemented. The state-backed publication further highlighted:
Even though Iran initially regulated cryptocurrencies last year, the recent amendment asks bitcoin (BTC) miners in the country to sell their cryptocurrencies directly to the central bank, taking the country’s bitcoin adoption to the next level.
The IRNA news agency further highlighted that the legal cap for the amount of cryptocurrency for each miner would be determined by the level of the subsidized energy used for mining and based on the instructions from authorities: