Main Reasons Why Bitcoin Growth Has Simmered Down in Iran: Regulation and Fear Among Some?
- The world of cryptos has significantly impacted how we view money today.
- Iran, which has been targeted by Western countries, and is now under severe political and economic constraints (including sanctions), has increasingly begun exploring the use of cryptos.
While some have welcomed the giant crypto along with altcoins with open arms, others have simply slammed their doors on them. Of course, we have also seen countries that are remaining patient and watching how others are dealing with the notion of digital assets.
In a recent post shared by news outlet, Null TX, the relationship between Iran and Bitcoin has been assessed.
There seems to have been a lot of positives mentioned, however, there were also an equal number of negatives as – all of which have been narrowed down to four key reasons or “developments” that are impacting Bitcoin’s performance in Iran. Here is a brief overview:
1. Bitcoin Commonly Used a Mean of Payment
According to the news outlet, Bitcoin has attracted the attention of many in Iran. It has become an important mean of payment to the point where restaurants and other businesses have introduced it merely due to increased customer demands.
Excluding any crypto-related events that might boost increased use of cryptocurrencies, it was disclosed that on average anywhere between 100 and 200 customers are willing to use crypto as a payment method on a monthly basis.
2. Regulatory Framework Remains Unestablished
In Iran, authoritative figures have since prevented financial institutions from involving themselves in Bitcoin and altcoins-related transactions and activities. This is quite common, as there are other countries that have tightened entry of said industry.
Interestingly, there appears to be no correlation between the first and second points made, as popularity only seems to grow. Based on Null TX’s reporting, a draft is in place regarding the handling of crypto but it has yet to be made into a law.
3. Iranian Ministers Target Crypto Miners?
You would think that a lack of regulation would imply denouncing any crypto activities entering the country. Turns out, it is not even the case in Iran, as the country is a preferred location for crypto mining due to their subsidized energy.
As per the claims made, the country’s steep expenses are what permits electricity costs to remain low. Will this change in the future? Possibly, but for the time being, might as well enjoy the perks attached.
4. LocalBitcoins One of Several Crypto Services Providers to Exit Iran
LocalBitcoins will no longer be offering its crypto services to residents in Iran. News outlet, Coin Desk, has previously reported on this matter, where they referenced the Bitcoin services provider stating the following on Twitter:
“Our services are not available in your region for risk-based reasons.”
While a more explicit reason has yet to be disclosed, many have argued that LocalBitcoins departure from Iran could have been merely due to the US-IRAN tension that took place last year – particularly involving Iran’s nuclear deal that U.S President Donald Trump did not sign.
Overall, like any other country, majority of residents are for the giant crypto, as they’ve realized its use cases and how it too can be used as a medium of exchange.
Although financial institutions are not allowed to take part in said activities, residents are not stopped like that of India for instance, where anything crypto might become illegal. In fact, businesses seem to be welcomed, but due to last year’s events, fear has led a number of services to come to a halt.