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Crypto Trading, Investing Illegal In Iran, Central Bank Governor Reiterates

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Crypto Trading, Investing Illegal In Iran, Central Bank Governor Reiterates

It is illegal to buy or sell cryptocurrency in Iran, the head of the country’s monetary authority has recently reminded citizens and businesses. The governor noted, however, that mining cryptocurrencies and using them in payments for imports is not against the law in the Islamic Republic.

Top Banker Confirms Crypto Trading Still Illegal in Iran

The purchase and sale of cryptocurrencies or using the digital assets for investment purposes is prohibited, the governor of the Central Bank of Iran (CBI), Ali Salehabadi, has recently told local media. At the same time, authorized persons and entities can legally mine crypto that can be employed for international settlements, the official pointed out.

Referring to regulations adopted by the bank and other government institutions such as the Ministry of Industry, Mine and Trade two years ago, the CBI chief elaborated that it is legal for Iranian companies to pay for imports with cryptocurrency. He was quoted in a report by the English-language edition of the Iranian Labour News Agency (ILNA) on Friday.

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Salehabadi’s comments came after on Tuesday, Deputy Minister of Trade Alireza Peymanpak announced Iran’s first import order using cryptocurrency as a payment method. The government representative, who also leads the nation’s Trade Promotion Organization, revealed that the Islamic Republic bought $10 million worth of goods using digital coins.

However, Iranian authorities are not willing to allow crypto payments inside Iran and earlier this year, Deputy Minister of Communications Reza Bagheri Asl dashed any hopes for that. Crypto trading and investing are not tolerated either, and the government cracked down on local exchanges, allowing only banks and licensed moneychangers to use digital currency mined in Iran to pay for imports.

Since 2019, when the authorities in Tehran recognized mining as a legitimate industrial activity, a number of enterprises have been licensed to mint digital currencies like bitcoin. But the energy-intensive production has been blamed as one of the causes for the growing electricity shortages and blackouts across the country, especially during the hot summers, when consumption spikes due to rising demand for cooling, and the cold winter months, when heating needs increase.

As a result, registered crypto farms were told to shut down their power-hungry equipment on more than one occasion in the past two years, while the Iran Power Generation, Transmission and Distribution Company, Tavanir, went after illegal miners busting thousands of underground crypto farms.

The illegal facilities are often running on subsidized electricity in residential areas. Last month, the utility vowed severe measures against this kind of unauthorized mining. ILNA quotes an estimate by Iranian officials who claim that a single bitcoin mining machine consumes as much energy as 24 households.

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In his interview, Governor Salehabadi also turned viewers’ attention to the CBI’s plan to introduce a ‘crypto rial,’ or a central bank digital currency issued by the Iranian monetary authority which is expected to partially replace paper cash. In April, the central bank informed financial institutions about upcoming regulations pertaining to the issuance of a digital rial, indicating it’s preparing to pilot the CBDC.

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CBDC, cbi, Central Bank, Crypto, crypto mining, crypto payments, crypto rial, Cryptocurrencies, Cryptocurrency, Digital Currency, Exchange, international settlements, Iran, Iranian, mining, Payments, purchase, Regulations, sale, Settlements

Do you think Iran may change its stance on crypto trading, investing, and payments in the future? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bank Of Russia Adds Digital Assets To Banking Chart Of Accounts

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Bank Of Russia Adds Digital Assets To Banking Chart Of Accounts

Central Bank of Russia has introduced digital assets, including the digital version of the Russian ruble, to the recently published draft of the new banking chart of accounts. In the future, financial institutions will be able to provide data about operations with these assets.

Russian Banks to Record Digital Currencies as Assets in Their Accounting Books

The Central Bank of the Russian Federation (CBR) has released the draft of the updated banking chart of accounts for next year. Starting from 2023, Russian lenders will be required to account for new types of transactions, including digital ruble flows and operations with digital financial assets (DFAs).

The monetary authority has been expanding the testing of its new central bank digital currency (CBDC) this year and hopes to pilot real-value settlements in early 2023. Authorities in Moscow are also working to more comprehensively regulate decentralized digital currencies.

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The current DFA law refers mostly to coins and tokens with an issuer but a new bill “On Digital Currency” aims to more fully cover cryptocurrencies like bitcoin. Amid sanctions imposed over an escalating war in Ukraine, Russia hopes to use both the digital ruble and crypto assets for international settlements.

Only one account has been reserved for the digital ruble while banks will have several accounts to reflect their DFAs in the sections “Acquired Digital Financial Assets” and “Issued Digital Assets,” the crypto page of the Russian business news portal RBC detailed.

Regulators explain the need for just one digital ruble account by pointing out that commercial banks will process only transfers of CBDC funds. The digital ruble will be issued by the Bank of Russia and stored in wallets at the CBR while credit institutions will act as intermediaries providing services to individuals and organizations such as executing transfers.

Russia’s central bank is actively pursuing its digital currency project with over a dozen banks now taking part in the trials of the CBDC platform. The regulator has been promoting its implementation in foreign trade while other institutions, most notably the finance ministry, want to also facilitate the employment of cryptocurrencies as a tool to circumvent Western financial restrictions.

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Account, accounts, Bank, Bank of Russia, banks, CBDC, CBR, Central Bank, chart of accounts, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, Digital Assets, Digital Currency, digital ruble, Payments, Russia, russian, Settlements

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Do you expect Russia to step up efforts to regulate digital currency payments in the coming months? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Hong Kong To Start Testing Digital Currency In Coming Months

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Hong Kong To Start Testing Digital Currency In Coming Months

China’s special administrative region of Hong Kong is going to trial а digital version of its dollar as early as this year, in preparation for eventual roll-out. The territory is trying to catch up with those that are already launching central bank digital currencies, including the People’s Republic with its digital yuan project.

Trials of Digital Hong Kong Dollar Planned for Q4

Hong Kong intends to begin testing a currency called the e-HKD, a digital incarnation of the Hong Kong dollar, in the remaining months of the year. The trials will be facilitated by the adoption of legislative amendments and the building of digital infrastructure necessary to support the project, the Hong Kong Monetary Authority (HKMA) announced, quoted by the South China Morning Post.

The pilot phase comes after consultations conducted to gather feedback on potential demand, privacy aspects, and other issues that may arise around the issuance of a central bank digital currency (CBDC). Howard Lee, deputy chief executive of the HKMA, which performs the role of a central bank, elaborated:

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Although there might not be an imminent use case for e-HKD, taking into account the findings of our study and the feedback from market consultation and international development, the HKMA will start paving the way for e-HKD implementation and will proceed toward a launch of e-HKD in the future.

The high-ranking official also noted that many jurisdictions are already exploring the launch of CBDCs. Participants in the consultations held by the banking authority expressed their concerns that Hong Kong is lagging behind and needs to catch up with the international trend.

The trials will involve selected banks, payment providers, and tech firms. These entities will examine the usage of the digital currency among their employees and a small number of clients, Lee detailed. “The purpose of introducing the e-HKD is to provide more choice for the customer,” the deputy CEO added. He also emphasized that the move will not affect Hong Kong’s three note-issuing banks.

HKMA to Set Timeline for e-HKD Launch After Tests

Following the pilot phase, the Hong Kong Monetary Authority will set the timeline for launching the e-HKD, said Colin Pou, executive director for financial infrastructure at the HKMA. The regulator first announced the CBDC plan in June 2021, as part of the Fintech 2025 strategy. A white paper was issued in October and the consultations ended in May.

Dozens of central banks around the world have been studying digital currencies and taking steps to create their own. The People’s Bank of China (PBOC) has been running pilot programs for its digital yuan (e-CNY) in a number of cities and recently announced the expansion of the pilot area in four of them to the province level.

Hong Kong has also conducted small-scale tests with the e-CNY this year, Howard Lee revealed earlier this month. Last summer, the region’s financial authorities said they will link the digital yuan to its domestic payments system. Besides its cooperation with the PBOC, the HKMA has been also working with the central banks of Thailand and the United Arab Emirates on cross-border CBDC payments.

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CBDC, Central Bank, China, Crypto, Cryptocurrencies, Cryptocurrency, Digital Currency, Digital Yuan, e-CNY, e-HKD, HKMA, Hong Kong, monetary authority, PBOC, Testing, Trial, trials

Do you expect Hong Kong to catch up with mainland China in its digital currency project? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, weerasak saeku

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Norway Releases Source Code For Digital Krone Sandbox, Utilizes Ethereum Technology

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Norway Releases Source Code For Digital Krone Sandbox, Utilizes Ethereum Technology

A crypto company working with the central bank of Norway has published the source code for the sandbox created to trial the digital version of the Nordic nation’s fiat currency. The prototype digital krone is being built on the Ethereum network and the regulator wants to test various technologies and evaluate the potential impact on financial stability.

Norges Bank, Nahmii Fintech Provide Access to Source Code for CBDC Sandbox Developed for Norway

Norway’s monetary authority, Norges Bank, and the Norwegian company Nahmii AS have made public the source code for the sandbox for the Scandinavian country’s central bank digital currency (CBDC). The two are working together on the prototype of the state-issued coin.

The code is now available on Github, offered under an open-source Apache 2.0 license, Nahmii recently announced in a blog post on its website. The fintech’s main task is to create a sandbox environment with open-sourced services for the digital krone.

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“This allows for the testing of basic token management use cases, including minting, burning and transferring ERC-20 tokens,” explained the firm, which is a developer of a Layer-2 scaling solution for the Ethereum blockchain.

The sandbox features a frontend, which has been designed to offer an interface for interacting with the test network, and network monitoring tools. It will facilitate the deployment of smart contracts and provide access controls, Nahmii detailed.

The company intends to add complex use cases in the future, including batch payments, security tokens and bridges, while further developing the custom frontend of the sandbox. It plans to deliver the second part of the project to Norges Bank by mid-September.

The central bank of Norway is among dozens of monetary policy regulators currently working to develop and issue their own digital currencies. The trials are meant to establish whether its CBDC will be safe and efficient for the public without negatively affecting the stability of the Norwegian krone and the nation’s financial system.

When it announced it is conducting experimental testing to determine if a digital currency should be issued, the authority acknowledged the role of cash as an alternative to bank account money. At the same time, the bank pointed out that the use of cash is declining and warned this could undermine its functions.

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CBDC, Central Bank, COIN, Digital Currency, digital krone, Ethereum, monetary authority, Nahmii, Norges Bank, Norway, norwegian, prototype, regulator, sandbox, Smart Contracts, source code, Testing, Tokens, trials

Do you expect Norway to eventually issue a central bank digital currency? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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