Denying Access to Crypto and Mining for Iran: United States' Reasons

Rate this post

The United States relationship with Iran is showing its colors even in the crypto world. According to Saeed Zarandi, the Assistant Minister of Industry, Trade and Supply of Iran, the United States are denying access to cryptocurrencies and crypto mining for the whole country.

The Iranian news service Al Fars, believes the United States government is denying access to crypto for Iran because of the money-laundering capabilities of cryptocurrencies. Most experts however, remain completely certain that United States are denying access mainly because of the imposed sanctions.

There isn’t much clarity on the subject of cryptocurrencies in Iran. Earlier this year, the Iranian government released their own gold-backed cryptocurrency, the Peyman. Peyman is the old Persian word for covenant.

Other than that, the country has been largely silent on cryptocurrencies, regulations and future projects. Zarandi stated that there’s an ongoing cooperation between the Central Bank of Iran and Iranian ministries. The cooperation will be focused on settling the issue of how and if cryptocurrencies will be used within the country.

Back in the end of 2018, the House and Senate introduced bills impose further sanctions on Iran because of “illegal crypto activity”. Over 8 months later, not a single one of the bills has been passed.

Denying access to mining is being done by Iran itself

It seems that currently, the Iranian government has its doubts about mining. After Iranian officials detected a spike in power consumption, they raided two former factories. What the authorities found, were over 1000 mining machines and all of them were confiscated.

A few months ago, the Iranian Ministry of Energy declared that the power would be cut off from suspected mining operations. This is mainly to many illegal mining operations taking advantage of Iranian subsidized electricity.

Know More: