President Urges Regulations on Cryptocurrencies in Iran

In comments at a Tuesday meeting of the Administration’s Economic Cooperation Headquarters, Rouhani said it is necessary to regulate the legal use of cryptocurrencies and devise and introduce new rules in order to protect the financial assets of people.

Warning of the risks associated with the cryptocurrency trade, the president urged people to avoid entering that market without enough expertise and knowledge.

Developing a smart economy is a necessity today, but legal and technical regulations need to be made carefully and a dynamic policy must be formulated in this regard, he added.

The president also noted that the energy-intensive mining of cryptocurrencies such as Bitcoin will be banned until the end of summer, saying the ministries of intelligence, ICT and energy are in charge of taking action against cryptocurrency miners.

Bitcoin and other cryptocurrencies are created through a process known as mining, where powerful computers compete with each other to solve complex mathematical problems. The process is highly energy intensive, often relying on electricity generated by fossil fuels.

The value of a single Bitcoin reached over 63,000 dollars for the first time in April. The new phenomenon’s bull market in the past year encouraged many around the world and also in Iran to invest in the field.

However, many financial gatekeepers are now expressing concerns about the future of cryptocurrency and the risks it involves.