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Iran’s ICT minister has proposed that Kish Island in the Persian Gulf be turned into a crypto clearinghouse.
Kish is an island off the coast of the Persian Gulf in southern Iran, and it is home to one of the country’s free trade zones. Muhammad Javad Azari Jahromi, Iran’s Minister of Information and Communications, made the proposal during a visit to the island.
Kish has the infrastructure to become a hub for international crypto exchanges in the region. The authorities must start talks with neighboring countries.
The island in the Persian Gulf is a tourist destination with over one million visitors each year. The government also plans to make it a financial trading area, which will attract more people.
Since the island’s excess energy cannot be sent to the mainland, the government allows its use by crypto miners. According to a Financial Tribune report, several mining farms are already operational on the island.
Regulation of crypto exchanges
Currently, crypto trading is prohibited in the country, although mining is permitted for licensed companies.
There are, however, a few exceptions. In April, Iran’s central bank allowed digital assets mined inside the country to be used to make payments for imports.
Policymakers in Iran are already hard at work putting regulations in place for crypto exchanges, and the ICT minister’s proposal is one of them.
Related reading | Looking Ahead: What Should EU Regulations Look Like For The Cryptocurrency Industry?
However, regulating digital assets is not a simple task. And no state agency wants to take full responsibility for it.
The Higher Cyberspace Council has raised some concerns related to cryptocurrency mined outside the country. The sous chef said,
It is not known who developed the cryptocurrencies. We do not have specific information on who invested in digital currencies. As such, we do not encourage investors to invest their money in digital assets.
He also said, “Cryptos could help the country circumvent sanctions in a limited number of cases,” and stressed that central banks should come up with an approach to this effect.
The Central Bank of Iran said it was in no rush to announce the crypto regulations.
The institution intends to collaborate with other government foundations, such as the High Council of Cyberspace, on a roadmap.
Related reading | How CABEI will support the implementation of the Bitcoin law in El Salvador
Bitcoin back on the rise?
BTC has finally benefited from a week of general uptrend, following the huge drop last month.
BTC is 5% in the last 7 days | Source: BTCUSD on TradingView
It looks like the market is bullish again, but it is not yet clear if this is really the case.
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