Iran Allows Cryptocurrency Payments for Imports to Avoid International Sanctions | JPEX

Iran, currently one of the most sanctioned countries, has begun approving the use and mining of cryptocurrencies in order to circumvent international restrictions on payments for its transactions, and has used cryptocurrencies to pay for import orders worth up to $10 million for the first time.

Iran Allows Cryptocurrency Payments for Imports to Avoid International Sanctions

In August 2022, the Iranian cabinet issued a new bill to redefine the regulations related to cryptocurrencies. In addition to officially approving the use of cryptocurrencies to pay for import orders, it also indicated that resources such as fuel and electricity would be reallocated for mining purposes. .

The law applies not only to financial institutions and industry leaders in Iran, but also to other local companies broadly.

Iran nuclear issue becomes the trigger for sanctions

Iran’s nuclear intentions have always been a ticking time bomb in the Middle East.

In order to combat Iran’s ability to develop nuclear weapons, several countries led by the United States have successively imposed sanctions on it, including banning the import of all Iranian goods and removing Iranian banks from SWIFT.

Although Iran has been trying to reach a deal with the United States in recent years, it hopes to reduce the nuclear program in exchange for the relaxation of sanctions by the West. However, in 2019, the United Nations “International Atomic Energy Agency” (IAEA) found undeclared nuclear materials in various parts of Iran, raising questions about the authorities’ “blatantly lying” on the issue of nuclear weapons. Its intention to develop nuclear weapons.

Cryptocurrency may become a breakthrough

Reza Fatemi Amin, Minister of Industry, Mining and Commerce of Iran, said that one of the main reasons why Iran will expand the use of cryptocurrencies and smart contracts is to reduce the impact of international financial sanctions.

At present, Iran has successfully completed an import order of up to 10 million US dollars through cryptocurrencies, and it is expected to conduct international trade with more countries in cryptocurrencies by the end of September this year.

Although Iran has not disclosed the content of the transaction, the country of exchange and the type of cryptocurrencies used, it is reasonable to speculate that the main transaction objects of Iran in the future will be countries that are also subject to US economic sanctions, such as Russia and Venezuela. A foreign exchange and trading system that is not dominated by the US dollar.