Iran’s Minister of Information and Communications Technology has proposed turning the island of Kish in the Persian Gulf into a cryptocurrency exchange.
Kish is an island located off the coast of the Persian Gulf in southern Iran, and hosts one of the country’s free trade zones. Mohammad Javad Azari Jahromi, Iran’s Minister of Information and Communications, made this proposal during a visit to the island.
Kish has the infrastructure to emerge as an international cryptocurrency exchange center in the region. The authorities need to start talks with neighboring countries.
The Persian Gulf island is a tourist site with more than one million visitors every year. The government is planning to make it a financial trading area as well, which will attract more people.
Since the excess energy on the island cannot be sent to the mainland, the government allows it to be used by Crypto miners. According to a report from Financial TribuneSeveral mining farms have already been set up and running on the island.
Regulating cryptocurrency exchange
Currently, cryptocurrency trading within the country is prohibited, although licensed companies are allowed to mine.
There are a few exceptions, however. In April, the Central Bank of Iran cleared the possibility of using digital assets mined within the country to make import payments.
Policy makers in Iran are already working on regulations for Cryptocurrency exchangeIn the middle comes the proposal of the Minister of Communications and Information Technology.
However, organizing digital assets is not an easy task. No government body wants to take full responsibility for this.
The Supreme Council of Cyberspace cited some concerns regarding cryptocurrency mined outside the country. Vice President said,
It is not clear who developed the cryptocurrency. We do not have accurate information about those who have invested in cryptocurrencies. As such, we do not encourage investors to invest their money in digital assets.
He also said, “Cryptos can help the country bypass sanctions in a limited number of cases,” and stressed that central banks should come up with an approach to this.
The Central Bank of Iran said it is in no hurry to announce regulations related to cryptocurrency.
The Foundation intends to collaborate with other government institutions, such as the Supreme Council of Cyberspace, on a roadmap.
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