Iranian government legitimizes mining of crypto currencies

However, transactions on the domestic financial market are not supported.

The Iranian government recognizes the mining of crypto currencies as a legitimate business. A permit from the Ministry of Industry, Mines and Trade is required.

According to the IRNA news agency's report, the government assumes that those who use crypto currencies must also accept the associated risks. Crypto currencies are neither supported nor guaranteed by the government nor the financial system.

The use of crypto currencies is not permitted for domestic transactions and will be taxable as for other commercial activities. The tax exemption is only possible if the acquired foreign exchange is returned to the domestic financial market, the Cabinet decided on Sunday 28 July.

Mining crypto currencies proves to be very lucrative in this country thanks to the low energy costs. Since energy costs in Iran are largely subsidized, this has become a controversial issue.

Masoud Khansari, president of the Tehran Chamber of Commerce, criticises the strict policy of the Iranian Central Bank's use of crypto currencies: "Today we use the crypto currencies restricted. ... In the area of crypto currencies politics is reacting very slowly, which is certainly damaging the Iranian economy," says Khansari according to Mehr News Agancy.