Saeed Zarandi, Iran’s Assistant Minister of Trade, Industry, and Supply has said that the US Congress is attempting to stop Iran’s access to cryptos and cryptos mining. Specifically, this comes as Iran has recently begun showcasing plans for a massive crypto mining facility.
US Congress reportedly worries Iran can evade sanctions with crypto
This news first broke in a report from the Iranian news service Al-Farsi. According to the report, the US Congress considers cryptocurrencies a method for evading sanctions and money laundering. This poses a clear problem, as the United States has imposed sanctions on the Middle Eastern nation.
Consequently, the US Congress is clearly aiming to enforce these sanctions. Zarandi is now accusing the US Congress of actively attempting to restrict Iranian access to both cryptocurrencies and crypto mining.
Zarandi has reportedly said that Iranian cryptocurrency ventures will face hurdles due to the US Congress. According to Zarandi, the US Congress – along with other American “lawmakers” – will actively prevent Iran from further adopting cryptocurrencies.
This comes as the Iranian government and the Central Bank of Iran is exploring broader cryptocurrency adoption. For example, Iran is said to be planning an Iranian digital currency which is under development.
Will the United States try to impose crypto sanctions?
This planned cryptocurrency will reportedly be called “PayMon”. This comes as Venezuela introduced a digital currency, the Petro, which has since received harsh criticism for not being a “real” cryptocurrency.
It remains to see exactly what form the Iranian PayMon token will take. However, Zarandi is reportedly warning that this digital currency will face intense US opposition.
According to a recent report, the United States is reportedly planning to introduce a bill demanding sanctions on both Iranian banks and the upcoming Iranian digital currency. Although President Barack Obama relaxed US-led Iranian sanctions, these have once again become harsher under President Donald Trump.
Nevertheless, it should however be noted that Iran is not entirely pro-crypto. Just last month, Iranian authorities seized around 1,000 Bitcoin mining rigs in the country. This came after a dramatic spike in electricity from two Bitcoin mining farms.
It is unclear whether Zarandi believes that the US is blocking cryptocurrency usage and mining in Iran in any other way than the upcoming bill said to target crypto in Iran. However, one can plainly see that cryptocurrencies present an easy way for Iranian individuals and companies to escape US-led trading and economic sanctions.
Image Source: Forbes
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.