Iran’s ICT minister has proposed that Kish Island in the Persian Gulf be turned into a cryptocurrency clearinghouse.
Kish is an island on the coast of the Persian Gulf in southern Iran and is one of the country’s free trade zones. Iranian Minister of Information and Communication Mohamed Javad Azari Jahromi made the proposal during his visit to the island.
Kish has the infrastructure to become the hub for international cryptocurrency exchanges in the region. The authorities must start negotiations with neighboring countries.
The island in the Persian Gulf is a tourist attraction with over one million tourists every year. The government also plans to make it a financial and commercial zone, which will attract more people.
Since the island’s excess energy cannot be sent to the mainland, the government allows its use Crypto miner. According to a report by Financial ForumSeveral mines on the island are operational.
Regulation of cryptocurrency exchanges
Currently, although the licensing company allows mining, cryptocurrency trading is prohibited in the country.
However, there are some exceptions. As of April, nationally mined digital assets authorized by the Central Bank of Iran can be used to pay for imported goods.
Iranian policymakers are already working on relevant regulations Crypto exchange, The proposal of the Minister of ICT is one of them.
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However, regulating digital assets is not a simple task. No national institution is prepared to take full responsibility for it.
The High Commission for Cyberspace has raised some concerns related to cryptocurrencies mined abroad. The deputy director said:
It is not known who developed the cryptocurrency. We do not have specific information on who invests in digital currencies. Therefore, we do not encourage investors to invest funds in digital assets.
He also said that “the cryptocurrency can help the country circumvent sanctions in a few cases” and stressed that the central bank should find a way to achieve this effect.
The Central Bank of Iran has said it is in no rush to announce encryption regulations.
The agency intends to collaborate with other government foundations on the roadmap, such as the Cyberspace High Commission.
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