Iranian Minister proposes to use Kish Island as a cryptocurrency trading center

The Iranian ICT Minister put forward a proposal that Kish Island in the Persian Gulf should be transformed into a cryptocurrency exchange center.

Kish is an island on the Persian Gulf coast in southern Iran and is one of the country’s free trade zones. The Iranian Minister of Information and Communications Mohamed Javad Azari Jahromi made this proposal during his visit to the island.

Kish has the infrastructure to become the hub of international cryptocurrency exchanges in the region. The authorities need to start negotiations with neighboring countries.

The island of the Persian Gulf is a tourist attraction with more than one million tourists every year. The government also plans to turn it into a financial and trade zone, which will further attract more people.

Since the excess energy on the island cannot be sent to the mainland, the government allows it to be used Crypto miner. According to a report from Financial Forum, Several mines on the island have been up and running.

Regulation of cryptocurrency exchanges

Currently, although the licensing company allows mining, cryptocurrency trading is prohibited in the country.

However, there are some exceptions. In April, the digital assets mined domestically authorized by the Central Bank of Iran can be used to pay for imported goods.

Iran’s policymakers are already working on relevant regulations Crypto exchange, The proposal from the Minister of ICT is among them.

Related Reading | Looking to the future: What should the EU’s regulation of the cryptocurrency industry look like?

However, regulating digital assets is not a simple task. No national institution is willing to take full responsibility for this.

The High Commission on Cyberspace cited certain concerns related to cryptocurrencies mined abroad. The deputy director said,

It is not clear who developed the cryptocurrency. We don’t have accurate information about people who invest in digital currencies. Therefore, we do not encourage investors to invest funds in digital assets.

He also stated that “cryptocurrency can help the country bypass sanctions in a few cases” and emphasized that the central bank should figure out a way to achieve this effect.

The Central Bank of Iran said it is not in a hurry to announce regulations related to encryption.

The agency intends to collaborate with other government foundations on the roadmap, such as the Cyberspace High Commission.

Related Reading | How will CABEI support the implementation of the Bitcoin law in El Salvador

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BTC is 5% in the last 7 days | Source: BTCUSD on TradingView

The market seems Bullish Again, but it is unclear whether this is really the case.

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