Iran's top trade official stated that they completed an import order worth $10 million in cryptocurrency, with plans to conduct additional such transactions in the near future
The country of Iran is the most recent crypto bro on the block. According to Tasnim news agency, the country's head of its Trade Promotion Organization, Alireza Peyman-Pak, the country made its first official import order worth $10 million using cryptocurrency. Furthermore, the official stated that "cryptocurrencies and smart contracts" will be widely used for foreign trade with "target countries" by the end of September.
It is most likely the largest publicly disclosed crypto transaction of this magnitude made by any single nation. It could also be the first of many transactions that would allow the country to avoid US sanctions and trade with similarly sanctioned countries like Russia, according to Reuters. The sanctions imposed by the United States on Iran cover virtually all imports.
Of course, bitcoin and other cryptocurrencies are extremely volatile, which has caused some problems in other countries that have formally adopted crypto as legal tender, such as El Salvador and the Central African Republic, even though some users see it as a better option than similarly volatile currencies.
It's also worth considering Russia's official stance on cryptocurrency right now. Russian President Vladimir Putin has officially distanced himself from cryptocurrency, calling official trade discussions "premature." Of course, Russia has good reason to side with Iran in avoiding sanctions, at least in terms of how that friendship appears to western leaders. Putin recently visited Iran to meet with President Ebrahim Raisi and Supreme Leader Ayatollah Khamenei, where they helped ink a $40 billion oil deal.
According to federal law enforcement, North Korea, on the other side of US-sanctioned nations, has been raking in funds from illicit crypto heists. Officials are concerned that the millions of dollars in cryptocurrency are being used to fund the DPRK's nuclear program. The United States has gone so far as to sanction crypto mixers, most recently Tornado Cash, for allegedly assisting North Korea in the laundering of stolen funds.
It's no secret that Iranians have been heavily utilizing various cryptocurrencies in order to avoid sanctions. Binance, a cryptocurrency exchange, has recently come under fire in the United States for facilitating anonymous trade by Iranians on its platform, despite sanctions. The company, which does not specify where its headquarters are located, has stated that it has since changed its KYC and anti-money laundering technology and policies to better comply with sanctions imposed on countries such as North Korea, Syria, Cuba, and Iran.
Binance's Global Head of Sanctions Chagri Poyraz told Coindesk in a candid and frequently irritated interview that Iranians can still exchange cryptocurrency if they conduct business outside of Iran. Tigran Gambaryan, the company's VP of Global Intelligence, went on to say that complying with US sanctions against Iran would be illegal. Of course, it's much more complicated than that, and because the company still does not claim any one country as its primary operation, it has so far avoided the rules and regulations of any one nation's international trade restrictions.
However, the country's adoption of cryptocurrency has not been without challenges. Iran has facilitated crypto mining in the country, with reports indicating that the country accounted for 4.5% of global mining activity. However, due to the massive power consumption required by these rigs, which causes rolling blackouts, Iran has since cracked down on the practice. The vast majority of those power vampire mining operations appeared to be unlicensed and illegal, eager to exploit the country's limited but subsidized grid.
#Iran #Crypto #Cryptocurrency #BTC #Bitcoin
SOURCE: gizmodo
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