Government plan to organize digital currencies; What new restrictions apply?
Recently, an unofficial version of the draft of the 13th Government Transformation Headquarters to regulate the situation of digital currencies in the country has been published. The draft, which has not yet been approved by any official body, sets strict rules for trading and holding digital currencies that, if implemented, could restrict the activities of traders and businesses in the field more than ever. Face.
According to digital currency and to Quoted From Digiato, a month after Mohsen Rezaei became in charge of cryptocurrencies in the government, a draft resolution has been prepared by the cryptocurrency working group at the 13th government’s transformation headquarters to be presented to the cabinet. This version is the eighth edition and is related to the 25th of January, 1400. It is unknown at this time what he will do after leaving the post. However, there are some very interesting points in this plan that could be the beginning of new restrictions in the crypto space of Iran.
Although there are positive points in this plan, it seems that the government has preferred full control of the cryptocurrency market in the country to organizing it. According to this draft, a system and a company should be set up that monitors the cryptocurrency exchanges of individuals; There is also a ceiling in Rials for individuals who are not allowed to keep cryptocurrencies in their personal wallets.
At the end of January this year, the Cryptography Working Group, under the auspices of the 13th Government Transformation Headquarters, presented the “Proposed Comprehensive Policies and Rulings for Organizing the Cryptography Ecosystem” for approval by the Cabinet. The plan is organized in 5 chapters and 30 articles that deal with topics such as determining the structure of organization, discussing the extraction and creation of cryptocurrencies, exchanging and maintaining cryptocurrencies, and discussing payment using these digital currencies.
An overview of this plan shows that the government, regardless of the nature of the cryptocurrencies and their decentralization, is looking for a way to fully monitor this market in Iran and prevent currency outflows, money laundering and similar concerns. In addition to this discussion, the ability to implement the control system considered by the government is also questioned.
Launching a system for monitoring and controlling the digital currency market
In the first part of the proposed plan of the cryptographic working group, the definitions and structure of the organization are mentioned. According to it Password A digital display is a value or legal entity that can be transmitted and stored electronically using distributed general office technology or similar technology.
The most important part of the first part is the discussion of launching “Rokn Intelligent System” and “Mehr Central Smart Company”. According to Article 6-1, the pillar system for monitoring, controlling and monitoring the cryptocurrencies market has functions such as authentication, registration of cryptographic addresses, automatic financial audit, registration of card numbers and bank accounts of authenticated identities.
The system also provides services to all authorized entities to identify suspicious addresses and transactions. This, although a matter of government concern, is at odds with the structure of the Chinese bloc and the nature of the cryptocurrencies. In addition, due to the discussion of sanctions and in case of non-access to this system, Iranian users in this area will be easily identified and will have irreparable consequences.
Mehr Central Smart Company will also be established based on the license and regulations of the Ministry of Economy with the investment of private sector activists. The company provides the necessary infrastructure for the pillar system, connection of exchange platforms (digital currency exchange offices) and safe deposit boxes of cryptocurrencies.
According to Article 3, the Ministry of Economy, in cooperation with the Central Bank and the Ministry of Information Technology, is obliged to take the necessary measures to establish the Mehr Cryptography Company and to launch the Rokn intelligent system within 2 months from the date of notification of this decree.
To coordinate in this area, the National Headquarters of Cryptocurrencies should be formed under the responsibility of the Vice President for Economic Affairs and consisting of representatives of the Supreme Council of Cyberspace, Central Bank, Ministries of Economy, Ministry of Information, Silence, Oil, Power, Communications, Interior and Scientific Vice President. .
Set strict rules for keeping digital currencies
According to the proposal of the cryptographic working group, the stock exchange organization is required to create and supervise the cryptocurrency custody funds within 6 months from the date of its notification. Iranian legal entities must keep all their passwords in this fund. Also, all exchange offices are required to keep at least 90% of their existing passwords in one of the above-mentioned boxes.
But the strangest part is about Article 23. According to this article, all Iranian natural persons can keep up to 4 times the authorized cash specified in the anti-money laundering executive regulations in their personal wallets. More than the specified amount should be transferred to custody funds and kept there.
Determining the cash ceiling means that as the price of cryptocurrencies fluctuates and their price increases, more cryptocurrencies must be transferred to this fund each time. An issue that is likely to be very troublesome.
Failure to do so will result in the offender being dealt with under the Anti-Money Laundering and Terrorist Financing Law.
Launching a wholesale market for digital currencies
Part of the proposal of the cryptographic working group is to discuss the purchase and sale of cryptocurrencies. According to Article 25, exchange platforms (Ramzarz exchange offices) must comply with this system and Mehr Company within 3 months of the operation of the Rokn intelligent system; Otherwise, it will be considered illegal, will be deprived of banking services and payment and will be dealt with.
One of the thought-provoking parts of the proposed plan is the need to stop some activities of exchange offices until the establishment of Mehr Company and launching the Rokan system. According to Article 26, any transfer of Rials between real and legal users is illegal, and withdrawals and deposits must be made from the bank account of the person. Also, during this period, it is only possible to withdraw Rials and no one should transfer the purchased cryptocurrencies to their wallet.
Payments, along with exchange offices, are required to authenticate all users when depositing, withdrawing and storing their data, until the launch of the Rokan system.
Exchanges must then obtain the required cryptocurrencies from this market. By the time the wholesale market is set up, exchange platforms must document how to secure their cryptocurrencies and notify the relevant devices.
From discounts to mining taxes
The next chapter of the proposal of the cryptographic working group deals with the two issues of extracting and producing cryptocurrencies. An overview of the materials in this section shows that the government has a more realistic view of the industry and is more moderate than the document proposed by the Ministry of Energy.
According to Article 4, the Ministry of Silence is obliged, in cooperation with the Ministries of Energy and Petroleum, to provide the necessary infrastructure to activate the entire capacity of the country and the private sector to mine the cryptocurrencies. The purpose of this issue is to respond to the increase in demand for cryptocurrencies at home and to prevent the outflow of foreign currency from the country.
As stated in Article 5, the Ministry of Silence should also determine the appropriate areas for the extraction of cryptocurrencies, and the centers that are active in these areas should be granted discounts on energy rates and taxes.
According to the document, support programs for Ramzarz extraction centers that use renewable energy sources will play a role in increasing productivity and reducing electricity losses in the network or have established an independent gas power plant.
According to Note 2 of Article 6, energy tariffs must be such that they do not lead to capital outflows or increase underground mining.
However, due to the recent power outages in the country, Ramzarz self-supply centers are required to provide 50% of their electricity production to the Ministry of Energy during peak hours, in return, the Ministry of Energy must provide a subsidy to them. Also, the electricity of other centers will be cut off during peak hours.
Another significant part is the need to meet the domestic demand for cryptocurrencies by mining centers. According to Article 12, these centers must sell the amount of currency determined by the National Cryptography Headquarters in the approved markets and exchanges per kilowatt-year of energy consumption.
Also, according to Article 13, mining centers will be recognized as industrial production units and will be subject to tax regulations, except those that comply with Articles 5 and 12.
This section also discusses the creation of a national digital currency by the central bank and common ciphers with other countries to establish trade exchanges.
In the other part of the prepared document, the use of different types of cryptocurrencies except cryptocurrency as a means of payment in the country is prohibited. But for international exchanges, the central bank must establish cryptographic payment gateways for international recipients to use it within four months of the notification.