Regulators Alone Cannot Resolve Contentious Cryptocurrency Issues

The Central Bank of Iran is not able to regulate cryptocurrencies, says the head of the Blockchain Association of Iran, calling for the creation of an independent council to do the job.
"We need a special council of representatives of state bodies and private companies to draw up regulations for cryptocurrencies. The CBI or the Security and Exchange Organization are not qualified [enough] to establish rules for cryptocurrencies given the multidimensionality of the problem, "Abbas Ashtiani said at a press conference on Tuesday.
Virtual currency mining is legal in Iran and miners can operate under government rules. Miners must acquire a license from the Ministry of Industries and pay their electricity bills according to energy export tariffs.
The law does not allow the use of cryptocurrencies for payments within the country. However, banks and licensed money changers can use digital currency mined by licensed miners in Iran to pay for imports.
The growing interest in cryptocurrency mining and trading has prompted authorities to draw up a roadmap for the cryptocurrency business. But it seems that this is not enough.
Experts say the issue is more complex than regulatory challenges. The result has been that no state body wants responsibility or involvement in the crypto industry per se.
The CBI said earlier this year that it was in no rush to announce new procedures for crypto exchanges. He said he is formulating a plan for the crypto market in collaboration with state institutions.
"The previous government had plans to regulate cryptocurrencies, although most of the plans were never put into practice. The Raisi administration appears to have no plans," Ashtiani noted, expressing the readiness of the Blockchain Association of Iran and related societies. to help make effective rules.

Source of concern

The government's inaction regarding cryptocurrencies has become a source of concern, he said. The whole cryptocurrency thing is so low on the to-do list that "we have not yet been able to hold a meeting with policy and decision makers."
Referring to the government's concerns about cryptocurrency mining and trading, Ashtiani said: "We understand the concerns of the legislators and assure them that their reserves can and will be addressed."
He added that "we are ready to help establish rules that can help ensure a positive impact of cryptocurrencies on the economy while minimizing crime."
Observers say official concerns about the growth of cryptocurrencies stem from a lack of sufficient knowledge and awareness.
Gholamreza Marhaba, spokesman for the Majlis Economic Commission, cautioned against taking a restrictive approach, as such measures "only push innovative solutions underground. This is what has happened in Iran's cryptocurrency market. Our studies show that 50% of crypto activities are in the informal market. This is while supporting regulations could enhance the contribution of digital currency to the economy ",
The Ministry of Industries, Mining and Commerce has reportedly stopped accepting new applications for crypto mining following a ban by the attorney general. The attorney general's office has also prohibited the release of seized hardware from unauthorized crypto miners.