00:44 GMT03 June 2020
Listen Live
    Business
    Get short URL
    151
    Subscribe

    MOSCOW, (Sputnik) - The Iranian cabinet has allowed tech firms to start mining cryptocurrencies but warned about potential risks, the presidential office said in a press release on Monday.

    "The council of ministers ... has approved the mining of cryptographic processing products", the press release read.

    At the same time, it stressed that cryptocurrencies would not be supported by the national banking system and should only be used bearing in mind possible risks.

    The statement also noted that cryptocurrencies should not be used when making internal transactions and would be taxed.

    Last year, Iran moved towards legalising the mining of cryptocurrencies despite the previous ban on domestic banks from dealing in digital currencies.

    Iran's cyberspace council secretary previously stated that the country is hoping to use crypto to trade with partners and friendly countries to reduce the impact of US sanctions on its economy. 

    Cryptomining is performed on a computer, a process in which cryptocurrency transactions are verified by third parties and added to the blockchain digital ledger. 

    Related:

    Bitcoin Rises 200% YTD, Rally More Sustainable Than in 2017 – Reports
    Bitcoin's Pullback Accelerates, Price Breaks Below $11,000
    Bitcoin Hasn't Yet Proved Itself to Be Viable in the Long Run – Academic
    Tags:
    mining, cryptocurrency, Iran
    Community standardsDiscussion
    Comment via SputnikComment via Facebook