Iranian association calls for crypto regulation

As government officials see it, by the end of September 2022, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries. In this context, Alireza Managhebi, the chairman of Iran’s Importers Group and Representatives of Foreign Companies (Imports Association), voiced concerns about the country’s crypto regulation.

He pointed out that a stable regulatory framework for cryptocurrencies should be established for cryptocurrencies to be successfully used as a means of payment for imports. Noting that crypto can be useful in this regard under the right regulatory infrastructure, Managhebi said their main concern is that this new method cannot be exploited by some people.

The chairman also implied the need for fixed rules provided by the Iranian government. A set of rules that will remain unchanged for at least several months will allow businesses to keep being active in the digital field without being harmed.

Managhebi noted that the government of Iran recently announced the official use of cryptocurrency to pay for imports. However, he clarified that the claim that this would immediately end the USD dominance in Iran is not very accurate because both the USD and cryptocurrency have their own places in the Iranian market.

The association official opined that it is necessary to educate and train people to use this new technology in Iran as well as have stable regulations in this regard.

Iran’s alternative payment methods

Earlier in August 2022 Iran made its first official import order using cryptocurrency, in a move that could allow the Islamic Republic to circumvent US sanctions that have crippled the economy. The order, worth USD 10 million, was a first step towards allowing the country to trade through digital assets that bypass the dollar-dominated global financial system and to trade with other countries similarly limited by US sanctions, such as Russia. The agency didn't specify which cryptocurrency was used in the transaction.

Before this the country entertained other payment methods to circumvent international sanctions. The idea was to use Mir bank cards, Russia’s alternative to Visa and Mastercard. Moscow has acted to forge close ties with Tehran since the war in Ukraine, attempting to build new economic and diplomatic partnerships elsewhere.