The president of Iran wants to initiate a legal framework for digital currencies that will help national interests.
President Hassan Rouhani talked about crypto during the cabinet’s Economic Coordination Board meeting on Tuesday. He called the board members to regulate it “as soon as possible” and warned consumers in Iran about the risks the industry carries.
“For legalizing the activity of cryptocurrencies and protecting people’s capital in this area, we must think of a solution as soon as possible and lay down and communicate the necessary laws and instructions.”Hassan Rouhani, president of Iran
President Rouhani thinks investments in digital currencies are not safe and “unprofessional entry in this field should be avoided.” He also encouraged government agencies and media to join forces and confirmed that crypto mining will be prohibited until September.
“The responsible agencies in the field of capital markets should cooperate with the media and cyberspace in the field of information, education and public awareness about this phenomenon and its instructions and laws.”Hassan Rouhani, president of Iran
The lack of rain that caused power shortages obliged Iran to take another measure against mining facilities. After announcing that miners who use household electricity would be sanctioned heavy fines, mining was prohibited during the summer season.
Unlicenced mining was creating many issues with the electricity supplying. It was also causing damages to the local power grid and transformers. Even though licensed miners use much less electricity, the ban applies to all of them.
“The authorised mining of cryptocurrencies does not consume much electricity and needs just around 300 megawatts. However, it is unauthorised crypto miners that consume a lot of electricity; they consume about 2,000 megawatts. As of today, it will be forbidden even for authorised miners to mine cryptocurrencies until late September.”Hassan Rouhani, president of Iran
Cryptocurrency mining is widely spread in the country of Iran. After the Iranian government categorized mining as an industrial activity, a large number of companies started to mine all over the country, helped by low-cost electricity and power plants.