The Iranian government’s decision to authorize cryptocurrency comes as a milestone in the journey of digital currencies. The decision was taken by the Iranian cabinet and cleared by Iran’s President Mr Hassan Rouhani. Today, cryptocurrency mining is considered to be a real industrial activity.
Taking the first step towards legitimizing crypto – A step to counter economic pressures owing to US Sanctions
With the advent of the legalizing of crypto mining, all currency traders would be required to get a license from Iran’s Mining Industry. Without their license and acknowledgement, it would be illegal to engage in any kind of crypto-currency transaction. The original news source covering the recent developments on cryptocurrency legitimization in Iran, has interpreted it as a step to counter the stringent socio-economic sanctions imposed by the United States. The sanctions have already played a crippling impact on Iran’s economy.
The government’s decision however does not legitimize the usage of cryptocurrencies for the purpose of internal transactions. The ones who are engaged in crypto currency transactions should always bear in mind that there are potential risks involved. Such parties would automatically not get any security cover from the government of Iran or the National Bank against potential losses incurred while dealing with cryptocurrencies.
In short, this decision is likely to increase the overall popularity of the usage of cryptocurrency or rather the legalization of the usage of digital currencies. There are several leading blockchain service providers offering crypto exchange software solutions in the Middle East Region like IBM and HashCash Consultants. In recent times, companies like HashCash Consultants have already entered into partnerships with Middle Eastern countries to help them set up digital exchange servers and other blockchain based solutions.
Summary: With Iran taking the first step by embracing cryptocurrency transactions (not applicable for domestic usage), the entire region’s approach towards cryptocurrencies is bound to change over the next 12 months. More countries are expected to authorize the usage of cryptocurrencies in recent times.
