Iran Impart Association calls for regulatory clarity on crypto in foreign trade

Iran’s Association of Importers has now called for a regulatory framework for cryptocurrency. This is after the Iranian government has officially used crypto to pay for its imports. To continue paying for imports with digital assets, a regulation must be imposed.

The head of Iran’s importer group and representatives of foreign companies (Import Association), Alireza Managhebi, has emphasized the need for concrete and stable regulation.

It is a widely demanded practice that must be given its importance if Iran were to continue digital asset payments for its imports.

A government official quoted,

By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries.

Managhebi mentioned that digital assets can become extremely useful if given a proper regulatory infrastructure, he further said,

The question is whether the authorities have developed consistent rules for the use of cryptocurrency, so that they do not change within two months and that businessmen active in this field will not be harmed?

Possible threat if crypto payments continue for imports from Iran

Managhebi was also of that belief and expressed some doubts that the official use of digital assets for imports could soon end the dollar dominance in the Iranian market. This could bring in a possible threat that the new crypto payment method could lead to the beginning of rent-seeking business groups.

The association mentioned

It is absolutely necessary to educate and train people to use this new technology in Iran, as well as have stable regulations in this regard

Earlier this month, Iran had placed the first international import order using $10 million in cryptocurrency.

The details of the deal have not been disclosed by the officials involving the amount of digital assets used or the amount of imported goods involved. It was mentioned that the $10 million order had represented the first of many such international trades to be executed using cryptocurrency.

Iran is preparing for the end of September

Iran had plans to embrace digital assets ever since 2017. In October 2020, the country had amended previously issued legislation that would allow the use of cryptocurrency to carry out imports.

Last year, in June, the Iranian Ministry of Commerce issued 30 operating licenses to Iranian miners to mine cryptocurrencies to be sold to the Central Bank of Iran.

The nation now uses these mined coins for payments related to imports. Iran supposedly expects that by the end of September, the use of digital assets and also smart contracts will be adopted and will be widespread in trade with target countries.

In other developments related to Iran and its efforts to regulate the industry, Iranian authorities have continued to seize illegal mining rigs in Tehran in recent months.