Jeff Albus

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It&#8217;s been a wild week out there, with liquidations rocking the market over the weekend and into Monday.&nbsp;



While Solana volumes spiked, memecoins <a href="https://blockworks.co/analytics/solana/solana-dex-activity-2-0">still held the top spot</a>, defying expectations of a risk-off shift.



The shifting market sands came into clearer focus <a href="https://www.aljazeera.com/economy/2025/6/24/fragile-iran-israel-ceasefire-calms-oil-markets">following</a> the fragile ceasefire deal between Iran and Israel. The deal, unexpectedly brokered by US President Donald Trump, seems to have pulled global markets out of a nosedive.



On <a href="https://blockworks.co/price/sol">Solana</a>, that détente unleashed a wave of forced liquidations, according to <a href="https://solanafloor.com/news/defi-sol-liquidations-market-crash">reporting</a> from SolanaFloor. Over $31 million in SOL perps were wiped onchain, surpassing even CEX liquidations for the second day in a row. Onchain liquidations exceeded centralized volumes by 96%, clearing the decks for a structural rebound.



While centralized markets found their footing, Solana validator revenue <a href="https://app.blockworksresearch.com/analytics/solana?dashboard=131">continued to cool</a>, and net staking yields held steady at 7.23%. Supply dynamics began to shift as liquid staking tokens (LSTs) crept upward again, hinting at renewed confidence in passive yield strategies.



Risk is still here. But capital is learning where it wants to live. And increasingly, that seems to be Solana.



The chain has <a href="https://blockworks.co/analytics/l1">remained the top performer</a> across all L1s and L2s in network revenue for more than 13 weeks now. Developer activity has stayed elevated. And while SOL&#8217;s price action remains tethered to macro chop, the fundamentals are quietly diverging.



Bitcoin, meanwhile, retraced from its recent highs, briefly <a href="https://blockworks.co/price/btc">dipping</a> below $100,000 for the first time since early May during the weekend selloff. However, it reclaimed key levels after the ceasefire without triggering a cascade of further liquidations. Capital appears to be rotating within crypto, not exiting it.



This week&#8217;s activity exposed a deeper rotation in how capital behaves under stress. In the face of macro risk, Solana mostly saw reallocation rather than outflows. Liquidity stayed onchain, stablecoin volume surged and perp infrastructure absorbed volatility faster than centralized markets did.



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Donald Trump

Risk-on in Solana, even as ceasefire cools tensions

Jack Kubinec

“Iran Unchained” released a streamlined version of its platform, built for sending crypto to anti-government activists in Iran where compliance laws make donations difficult.&nbsp;&nbsp;



The NGO’s “V2” site is a fork of crypto fundraising platform Gitcoin that lets donors outside the US sidestep fundraising limits and send money directly to activists’ wallets. The site’s founder is trying to keep the funds obscured from Iran’s Islamic Republic while also proving to the US Treasury that its crypto donations aren’t funding illicit causes.



Iran Unchained was started in January 2023, a few months after a young woman’s death in police custody sparked protests against Iran’s Islamic Republic. The NGO organizes requests for grants from Iranians with the overarching <a href="https://twitter.com/UnchainIran/status/1732064284560220246">goal</a> of overthrowing the Islamic Republic and installing a secular government in its place.&nbsp;



Soleimani’s fundraising <a href="https://v2.iranunchained.com/">platform</a> combats what he calls “overcompliance” in the fiat realm, where banks and funding platforms shut down compliant donations to Iran to avoid liability altogether in dealing with the OFAC-<a href="https://ofac.treasury.gov/sanctions-programs-and-country-information/iran-sanctions">sanctioned</a> state. An anti-censorship group called Free Internet for Iran was yanked from GoFundMe for opaque reasons before turning to Iran Unchained, Soleimani said.



Read more: <a href="https://blockworks.co/news/nfts-for-maui">Maui wildfire recovery gets the spotlight thanks to charitable NFT collection</a>



The NGO still has to follow compliance laws itself though. Iran Unchained is registered as a nonprofit in Wyoming and files quarterly <a href="https://blockworks.co/tag/ofac">OFAC</a> reports giving assurance it’s on the right side of sanctions laws.



“The logistical challenge for Iran Unchained is how to send money securely to grantees and beneficiaries inside of Iran while protecting them from the Islamic Republic and while providing enough documentation to the United States Treasury to convince them that we&#8217;re not sending money to terrorists,” Soleimani said.&nbsp;



Funds have gone towards internet provision, humanitarian aid, <a href="https://blockworks.co/tag/nfts">NFTs</a> from Iranian artists and sending Iranian developers to <a href="https://blockworks.co/tag/ethereum">Ethereum</a> conferences.&nbsp;



Iran Unchained grants are voted on by a decentralized autonomous organization (DAO) made up of Iranian friends of Soleimani. Grants that pass governance are listed on the NGO’s homepage alongside crypto wallet addresses where donors can send funds directly.&nbsp;



Cross-border aid is a popular use case for crypto. Ether poured into <a href="https://blockworks.co/news/ukraine-cancels-proposed-airdrop-after-receiving-record-donations">Ukraine’s crypto wallet</a> following Russia’s 2022 invasion, and <a href="https://blockworks.co/news/crypto-aid-charity-donations">Crypto Aid Israel raised $185,000</a> in a little over a week following attacks on Oct. 7.



Updated Dec. 6, 2022 at 2:20 pm ET: Updated headline for clarity.



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DAOs

Grant program aims to overthrow Iran’s Islamic Republic with crypto

Sebastian Sinclair

<div id="highlights-block_63047d6f826b6" class="highlights">
 <ul>
 <li>Most of the seized rigs came from a haul of 7,000 in June, the country’s largest to date</li>
 <li>The Iranian government has repeatedly imposed crypto mining restrictions over the past 12 months</li>
 </ul>
 
</div>



Iran has confiscated more than 9,400 crypto mining rigs over the past five months, all while the country has grappled with power blackouts over the summer.



The mining rigs were discovered dotted all over the capital, Kambiz Nazerian, head of Tehran Electricity Distribution Company, said on Monday and reported by <a href="https://www.iranintl.com/en/202208225681" target="_blank" rel="noreferrer noopener">Iran International</a>.



Most of that figure stems from a large haul in June, when Iranian police discovered an illegal mining farm and seized <a href="https://www.reuters.com/technology/iran-seizes-7000-cryptocurrency-computer-miners-largest-haul-date-2021-06-22/" target="_blank" rel="noreferrer noopener">7,000 units</a>, marking the country’s largest confiscation of illegal machines to date.



Despite being an oil-rich nation, the country has continually suffered rolling power outages and water shortages due to heatwaves, leading to protests in multiple cities.



The government often pointed to crypto mining as a major cause of surging demand.



While reports don&#8217;t specify whether all the rigs seized were Bitcoin-specific, Iran contributed as much as 7.5% of bitcoin’s hashrate (the total computing power on the network) in March last year, according to the <a href="https://ccaf.io/cbeci/mining_map" target="_blank" rel="noreferrer noopener">Cambridge Bitcoin Electricity Consumption Index</a>. Iran’s hashrate has since dropped to 0.2%, as of January.



As part of efforts to combat increased demand for electricity, Iran banned all crypto mining activity in May for a period of four months. The embargo is expected to lift in September.



Iran later cut power to <a href="https://cms.blockworks.co/iran-cracks-down-on-crypto-miners-as-electricity-demand-surges/" target="_blank" rel="noreferrer noopener">118 licensed crypto mining farms</a> in June over fears there would not be enough electricity to meet peak demand during the country’s hotter months.&nbsp;



The government also imposed limits on crypto mining activity in the winter and summer of last year. And while licensed miners have had to abide by the rules, illegal mining operations have persisted.



They’re often found stashed inside <a href="https://www.rferl.org/a/iran-cryptocurrency-mining-devices-seized/31999442.html#:~:text=Some%20of%20the%20cryptomining%20units,where%20it%20is%20heavily%20subsidized." target="_blank" rel="noreferrer noopener">mosques, schools and local businesses</a> in order to benefit from subsidized or free power and to conceal their true nature, according to reports.



In January of 2021, authorities in Iran seized <a href="https://www.tasnimnews.com/en/news/2021/01/17/2434192/thousands-of-illicit-bitcoin-mining-machines-seized-in-iran" target="_blank" rel="noreferrer noopener">45,000</a> application-specific integrated circuit machines, found to be using illegally subsidized electricity from state-run energy provider Tavanir.



Earlier that month, Iranian authorities closed <a href="https://financialtribune.com/articles/business-and-markets/106872/iran-crackdown-on-illegal-crypto-farms" target="_blank" rel="noreferrer noopener">1,620</a> illegal cryptocurrency mining operations said to have collectively used 250 megawatts of electricity over an 18-month period.&nbsp;



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Bitcoin

It’s Over 9,000: Crypto Mining Rigs Seized in Iran This Year

Shalini Nagarajan

<div id="highlights-block_62f36a17720f1" class="highlights">
 <ul>
 <li>Iran recently paid for an import order with $10 million in cryptocurrency, local media reported</li>
 <li>The US has imposed strict sanctions on Iran for the past 40 years</li>
 </ul>
 
</div>



Iran is reportedly moving to directly facilitate imports with crypto, which could allow the nation to bypass hard-hitting sanctions imposed by the US.



Local news outlet <a href="https://www.tasnimnews.com/fa/news/1401/05/18/2755209/%D9%86%D8%AE%D8%B3%D8%AA%DB%8C%D9%86-%D8%AB%D8%A8%D8%AA-%D8%B3%D9%81%D8%A7%D8%B1%D8%B4-%D8%B1%D8%B3%D9%85%DB%8C-%D9%88%D8%A7%D8%B1%D8%AF%D8%A7%D8%AA-%D8%A8%D8%A7-%D8%B1%D9%85%D8%B2%D8%A7%D8%B1%D8%B2-%D8%AF%D8%B1-%DA%A9%D8%B4%D9%88%D8%B1-%D8%A7%D9%86%D8%AC%D8%A7%D9%85-%D8%B4%D8%AF" target="_blank" rel="noreferrer noopener">Tasnim</a> reported on Tuesday that the Islamic republic filed its first crypto-based order, worth $10 million, but didn’t specify which digital asset was used for the transaction or what was imported.



Alireza Peyman-Pak, head of the country’s Trade Promotion Organization (TPO), appeared to confirm the order in a <a href="https://twitter.com/peymanpak_ir/status/1556927239907835904" target="_blank" rel="noreferrer noopener">tweet</a> and said it could be the first of many. The TPO, which is tied to the nation&#8217;s Ministry of Commerce, promotes Iran&#8217;s non-oil exports.



“By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries,” he wrote (automatically translated).



The US has imposed crippling <a href="https://www.state.gov/iran-sanctions/" target="_blank" rel="noreferrer noopener">sanctions</a> on Iran over the past four decades. Under the law, businesses in the US are prohibited from conducting business in or with Iran — including the servicing of crypto investors and traders. The sanctions also ban imports.



But Iran may be using cryptocurrency mining to dodge sanctions. A <a href="https://www.elliptic.co/blog/how-iran-uses-bitcoin-mining-to-evade-sanctions#:~:text=Elliptic%20estimates%20that%204.5%25%20of,purchase%20imports%20and%20bypass%20sanctions." target="_blank" rel="noreferrer noopener">study from Elliptic</a> last year found that 4.5% of all bitcoin mining takes place in Iran, allowing the country to earn hundreds of millions of dollars that can be used for import orders and sanction evasion.



Iran officially <a href="https://cms.blockworks.co/iran-cracks-down-on-crypto-miners-as-electricity-demand-surges/" target="_blank" rel="noreferrer noopener">recognized</a> cryptocurrency mining as a legitimate business in 2019, following months of speculation, and issued over 1,000 mining licenses to generate capital for the nation.



Furthermore, crypto traders in Iran might not really be fully restricted. They may have been able to avoid sanctions by using cryptocurrency exchanges that gave them easy access, recent reports suggest.



Reuters reported in July that Binance, the top crypto exchange by trade volume, <a href="https://cms.blockworks.co/crypto-traders-in-iran-skirted-binance-ban-following-us-sanctions/" target="_blank" rel="noreferrer noopener">continued</a> to allow Iran-based customers despite US sanctions. Chagri Poyraz, global head of sanctions at Binance, said traders may have been able to bypass geographical restrictions using virtual private networks (VPNs).



Kraken is also reportedly <a href="https://cms.blockworks.co/kraken-investigated-for-allegedly-servicing-crypto-traders-in-iran-report/" target="_blank" rel="noreferrer noopener">under investigation</a> for allegedly facilitating crypto trades in Iran that violated the same sanctions.



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Crypto

Iran Inks First Import Order Paid With Crypto

<div id="highlights-block_62cd48356ed6e" class="highlights">
 <ul>
 <li>Reuters found some crypto traders in Iran could still access Binance despite US sanctions and a company ban</li>
 <li>The exchange has said it has blocked access to anyone in Iran out of respect for the US</li>
 </ul>
 
</div>



Binance, the world’s leading cryptocurrency exchange by trade volume, could have allowed customers in Iran to trade on its platform, skirting a 2018 ban imposed following a round of US sanctions against the country over its nuclear ambitions.&nbsp;



<a href="https://www.reuters.com/technology/exclusive-binance-served-crypto-traders-iran-years-despite-us-sanctions-clients-2022-07-11/" target="_blank" rel="noreferrer noopener">Reuters reported</a> on Monday that the exchange served Iran-based customers until last September, raising regulatory concerns.



Binance acknowledged the situation in a Monday <a href="https://www.binance.com/en/blog/leadership/binance-and-our-commitment-to-the-letter-of-law-3197776931892927743" target="_blank" rel="noreferrer noopener">blog</a>, penned by Chagri Poyraz, the company’s global head of sanctions, which said traders can bypass geographical restrictions by using VPNs (virtual private networks).



While Binance does not have an official base, CEO Changpeng Zhao told <a href="https://fortune.com/longform/binance-changpeng-cz-zhao-net-worth-crypto-exchange-trading/" target="_blank" rel="noreferrer noopener">Fortune</a> in March that the company would announce a proper headquarters “very soon.” Because of its international presence, Binance is expected to align with international sanction laws.



The US reimposed sanctions on Iran in 2018 after former President Donald Trump <a href="https://www.nytimes.com/2018/05/08/world/middleeast/trump-iran-nuclear-deal.html" target="_blank" rel="noreferrer noopener">withdrew</a> from the Iranian nuclear deal. In November that year, Binance reportedly <a href="https://www.coindesk.com/markets/2018/11/15/binance-warns-iranian-traders-to-withdraw-crypto-amid-sanctions/" target="_blank" rel="noreferrer noopener">warned traders</a> in the country to withdraw their funds.&nbsp;



In his blog post, Poyraz noted Binance is not a US-based company nor does it have headquarters there, but it blocked access to traders in Iran out of respect for America’s role in the global economy.



“With that said, I cannot ignore the elephant in the room about traders in sanctioned jurisdictions using readily available tools like VPNs to access platforms,” he wrote, pointing to the <a href="https://consumer.ftc.gov/articles/how-safely-use-public-wi-fi-networks" target="_blank" rel="noreferrer noopener">Federal Trade Commission</a> and <a href="https://www.cisa.gov/uscert/ncas/tips/ST05-003" target="_blank" rel="noreferrer noopener">Cybersecurity and Infrastructure Security Agency’s</a> recommendation of free VPN use. 



“While we are actively working on identifying users based on additional factors such as user behavior as opposed to only geolocation, some users do slip through the cracks for us, like they do for every other business out there,” Poyraz added.



<h3 class="wp-block-heading">Binance executives reportedly joked about popularity in Iran</h3>



Even so, seven traders told Reuters they dodged the ban and continued using their Binance accounts as recently as September 2021. They lost access after the company hardened its anti-money laundering rules a month prior. 



Binance seemed to have weak checks until that point, requiring only a simple email registration to sign up. One Tehran-based trader told Reuters they preferred to use Binance because it didn’t require identity verification.



The exchange was apparently well aware of its popularity in Iran as senior executives jokingly exchanged text messages about it in 2019 and 2020, the report said, pointing to a message “IRAN BOYS” written in relation to data showing its popularity on Instagram among Iran-based users.



Binance is “fully compliant with all international financial sanctions, including blocking platform access to users in Iran, North Korea, among many others,” a spokesperson told Blockworks in an emailed response.



Reuters&#8217; report comes around one month after its <a href="https://www.reuters.com/investigates/special-report/fintech-crypto-binance-dirtymoney/" target="_blank" rel="noreferrer noopener">investigation</a> into alleged money laundering on Binance&#8217;s platform. The outlet claimed Binance had processed illicit transactions totaling roughly $2.3 billion related to hacks, investment fraud and illicit drug deals.



The investigation found North Korean hackers created Binance accounts and eventually directed stolen crypto to Slovakian crypto exchange Eterbase. Eterbase’s CEO reportedly said Binance “had no idea who was moving money through their exchange.”&nbsp;



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Binance

Crypto Traders in Iran Skirted Binance Ban Following US Sanctions

Jocelyn Yang

<div id="highlights-block_62b2288fda849" class="highlights">
 <ul>
 <li>Electricity to licensed crypto mining centers in Iran will be cut off — but illegal miners could be unaffected</li>
 <li>6.9% of all bitcoin mining worldwide took place in Iran in June 2021, but the country’s bitcoin hash rate share had fallen to 0.2% by January 2022</li>
 </ul>
 
</div>



Iran will cut electric power to all of its 118 licensed crypto mining centers starting June 22 as summer temperatures drive up power demand, energy ministry spokesperson Mostafa Rajabi Mashhadi said on state TV, according to a <a href="https://news.bloomberglaw.com/crypto/iran-to-cut-power-supply-to-licensed-crypto-miners-state-tv" target="_blank" rel="noreferrer noopener">Bloomberg</a> report.



The country’s energy demand is repeatedly hitting all-time highs, the ministry said. “According to forecasts, this week&#8217;s consumption requirement will exceed 63,000 megawatts, which means we must limit electricity supply,” Rajabi Mashhadi <a href="https://arzdigital.com/iran-will-cut-off-crypto-miners-power/" target="_blank" rel="noreferrer noopener">said</a> in an interview that was translated into English.&nbsp;



This is the third time Iran has suspended local crypto mining activities to prevent power blackouts in the past year. The government previously <a href="https://www.aljazeera.com/economy/2021/12/28/biran-orders-crypto-mining-ban-to-prevent-winter-blackouts" target="_blank" rel="noreferrer noopener">halted operations in the winter and summer of 2021</a> due to the same seasonal electricity issues.&nbsp;



<h3 class="wp-block-heading">Crypto mining&nbsp;in Iran</h3>



The Iranian government officially <a href="https://www.aljazeera.com/economy/2019/8/5/irans-government-recognises-cryptocurrency-mining-with-caveat" target="_blank" rel="noreferrer noopener">recognized</a> cryptocurrency mining as a legitimate business activity in 2019 and <a href="https://asiatimes.com/2020/01/iran-issues-1000-crypto-mining-licenses/" target="_blank" rel="noreferrer noopener">issued over 1,000 crypto mining licenses</a> to bring capital into the heavily-sanctioned country. Miners are required to pay a tax on their electricity and <a href="https://www.elliptic.co/blog/how-iran-uses-bitcoin-mining-to-evade-sanctions" target="_blank" rel="noreferrer noopener">sell their mined crypto to Iran’s central bank</a>.&nbsp;



Still, low-cost electricity kept attracting local miners. Iran&#8217;s bitcoin mining accounted for 6.9% of the total bitcoin hash rate in June 2021, according to the Cambridge Centre for Alternative Finance (CCAF), putting it comfortably among the top 10 bitcoin mining countries in the world.&nbsp;



At the same time, increasing instances of illegal bitcoin mining in Iran has led to regulatory scrutiny. Iranian police <a href="https://www.reuters.com/technology/iran-seizes-7000-cryptocurrency-computer-miners-largest-haul-date-2021-06-22/" target="_blank" rel="noreferrer noopener">seized 7,000 mining computers</a> at an illegal cryptocurrency farm in June 2021, Reuters reported.&nbsp;



It is also becoming increasingly common for Iranians to mine bitcoin at home using the country’s subsidized household electricity. Pictures have surfaced online of mining machines running inside a mosque — which receive free electricity in Iran — according to blockchain analytics firm <a href="https://www.elliptic.co/blog/how-iran-uses-bitcoin-mining-to-evade-sanctions" target="_blank" rel="noreferrer noopener">Elliptic</a>.&nbsp;&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">تو مسجد بیت‌کوین ماین می‌کنند قربت الی الله <a href="https://t.co/cPdOo0g0hK">pic.twitter.com/cPdOo0g0hK</a>&mdash; رضا مهدوی (@Rmahdavii) <a href="https://twitter.com/Rmahdavii/status/1143766769783328769?ref_src=twsrc%5Etfw">June 26, 2019</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



“Access to off-grid electricity and geographically scattered, small-scale operations are among the major means used by underground miners to hide their operations from authorities and circumvent the ban,” CCAF <a href="https://www.jbs.cam.ac.uk/insight/2022/bitcoin-mining-new-data-reveal-a-surprising-resurgence/" target="_blank" rel="noreferrer noopener">said</a> in an analysis.



Between 2015 and 2021, bitcoin mining funneled more than $186 million into Iran-based cryptocurrency services, a <a href="https://go.chainalysis.com/2022-Crypto-Crime-Report.html" target="_blank" rel="noreferrer noopener">Chainalysis crypto crime report</a> showed. The report also stated that illegal bitcoin miners accounted for around 85% of the cryptocurrency activity in the country.&nbsp;



Mining activity in the country appears to have tailed off, though. By January 2022, Iran accounted for a paltry 0.2% of the global hash rate, according to <a href="https://ccaf.io/cbeci/index" target="_blank" rel="noreferrer noopener">Cambridge Bitcoin Electricity Consumption Index.</a> This spring, the Iranian government drafted new measures to increase the penalties for illegal crypto mining using subsidized electricity, including rising fines by a minimum of three and a maximum of five times, and imprisonment of the offender, according to <a href="https://www.tehrantimes.com/news/471749/Iran-to-increase-penalties-for-illegal-cryptocurrency-mining" target="_blank" rel="noreferrer noopener">local media</a>.



Unauthorized crypto mining “activities are a threat to the country&#8217;s energy security, they inflict huge damage on the national grid…and so the consequences must be in proportion to the damages,” <a href="https://financialtribune.com/articles/business-and-markets/113882/new-crackdown-on-illegal-cryptominers">said</a> Mohammad Khodadadi Bohlouli, the official in charge of supplying power to legal cryptomining centers at Iran Power Generation and Transmission Company, or Tavanir.



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crypto mining

Iran Cracks Down on Crypto Miners as Electricity Demand Surges

<div id="highlights-block_61de0e60c9d81" class="highlights">
 <ul>
 <li>The Central Bank of Iran and the Country&#8217;s Ministry of Trade have reached a deal that would allow local merchants to use crypto for their international trade deals</li>
 <li>The deal comes as Iran seeks out measures to circumvent decade-long US economic sanctions relating to Iran&#8217;s nuclear activity</li>
 </ul>
 
</div>



Iran&#8217;s central bank and the country&#8217;s Ministry of Industry, Mine and Trade have agreed to a deal that will enable local merchants to begin using cryptocurrencies for foreign trade settlements, according to local media reports.



A mechanism, finalized during the first meeting of a joint foreign currency working group between the bank and the ministry, will involve linking the bank&#8217;s crypto platform with Iran&#8217;s Comprehensive Trade System, the <a href="https://financialtribune.com/articles/business-and-markets/112006/iran-to-allow-businesses-use-cryptos-for-int-l-settlements" target="_blank" rel="noreferrer noopener">Financial Tribune</a> reported Monday.



The system will allow local businesses and merchants to settle payments with international partners when using crypto. Further details on when the deal would come into effect have not been provided.



The deal comes as Iran continues to explore means to circumvent economic sanctions, imposed by the US in 2012, over Iran&#8217;s nuclear activity and the international community&#8217;s concerns relating to the country&#8217;s nuclear program at the time.



Alireza Peyman-Pak, the ministry&#8217;s deputy minister and head of Iran’s Trade Promotion Organization, an affiliate of the Ministry of Commerce, made the announcement via his social media account on Friday, the <a href="https://www.tehrantimes.com/news/468855/Mechanism-for-using-cryptocurrencies-in-foreign-trade-finalized" target="_blank" rel="noreferrer noopener">Tehran Times</a> reported the same day.



&#8220;We are finalizing a mechanism for operations of the system.&#8221; Peyman Pak said, per the Tribune&#8217;s report.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">&#8220;This should provide new opportunities for importers and exporters to use cryptos in their international deals.&#8221; </blockquote>



Iran&#8217;s stance towards crypto has oscillated in recent years. In May of last year, Iranian authorities banned the domestic trade activity of crypto assets obtained from outside the country&#8217;s borders in an attempt to slow capital flight — viewed as depreciating the country&#8217;s currency, the rial.



That move came a month after the central bank said licensed institutions and money changers could make use of crypto mined by Iranian miners in a bid to navigate the country&#8217;s sanctions and promote economic activity.



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Foreign Trade

Iran’s Central Bank, Ministry of Industry to Allow Crypto Payments for Foreign Trade Settlements

Jacquelyn Melinek

<div id="highlights-block_60c0dbad9c6f9" class="highlights">
 <ul>
 <li>El Salvador’s central bank President Douglas Rodriguez said bitcoin is already being used in the country and “it’s not something people need to be afraid of.”</li>
 <li>Other Latin American politicians show support for bitcoin, opening the door for potential new opportunities in neighboring countries </li>
 </ul>
 
</div>



El Salvador President Nayib Bukele tweeted that the “Bitcoin Law” has been approved by a “supermajority&#8221; in the El Salvadoran Congress on June 9, making the country the first in the world to formally <a href="https://cms.blockworks.co/el-salvador-to-become-first-nation-with-bitcoin-as-legal-tender/" target="_blank" rel="noreferrer noopener">adopt bitcoin as legal tender</a>.&nbsp;



The 39-year-old President Bukele, who is known to break from the norms, said in the tweet that 62 out of 84 lawmakers voted in favor of the proposal. The country’s legislative assembly also tweeted about the approval of the new law with a matching 62 votes in favor.&nbsp;



Bitcoin as legal tender is only the first step on the way toward central bank digital currencies (<a href="https://cms.blockworks.co/feds-brainard-says-us-must-remain-on-frontier-of-cbdc-research/" target="_blank" rel="noreferrer noopener">CBDCs</a>), according to Roxe Inc. chief business officer Josh Li. “CBDCs will be a major catalyst for making crypto domestic and cross-border payments go mainstream. Why? With the right technology, CBDCs can not only make payments much faster and less expensive, but more interoperable between payment platforms and various financial institutions.” he said in an email to Blockworks on June 9.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">The <a href="https://twitter.com/hashtag/BitcoinLaw?src=hash&amp;ref_src=twsrc%5Etfw">#BitcoinLaw</a> has been approved by a supermajority in the Salvadoran Congress. 62 out of 84 votes! History! <a href="https://twitter.com/hashtag/Btc?src=hash&amp;ref_src=twsrc%5Etfw">#Btc</a>🇸🇻&mdash; Nayib Bukele 🇸🇻 (@nayibbukele) <a href="https://twitter.com/nayibbukele/status/1402507224916836352?ref_src=twsrc%5Etfw">June 9, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Con 62 votos, el pleno legislativo aprueba la <a href="https://twitter.com/hashtag/LeyBitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#LeyBitcoin</a> con la que El Salvador adopta el <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> como moneda de circulación legal. ¡<a href="https://twitter.com/hashtag/LaNuevaAsamblea?src=hash&amp;ref_src=twsrc%5Etfw">#LaNuevaAsamblea</a> sigue haciendo historia! <a href="https://t.co/Ur9OQzPvYI">pic.twitter.com/Ur9OQzPvYI</a>&mdash; Asamblea Legislativa 🇸🇻 (@AsambleaSV) <a href="https://twitter.com/AsambleaSV/status/1402508029564760064?ref_src=twsrc%5Etfw">June 9, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



At the Bitcoin 2021 conference in Miami last week, President Bukele announced via a <a href="https://twitter.com/nayibbukele/status/1401327906178191366">video recording</a> that he had plans to send legislation to make bitcoin legal tender in El Salvador.&nbsp;



“In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy,” President Bukele said in the video on June 5.&nbsp;



Additionally, El Salvador’s central bank President Douglas Rodriguez said in an interview with state TV on June 8 that bitcoin is already being used in the country and “it’s not something people need to be afraid of,” but also said it won’t replace the US dollar.&nbsp;



The <a href="https://twitter.com/nayibbukele/status/1402446890466217985/photo/2">official document</a> President Bukele presented to The Legislative Assembly of The Republic of El Salvador said, “In order to promote economic growth of the nation, it is necessary to authorize the circulation of a digital currency whose value answers exclusively to free-market criteria, in order to increase national wealth for the benefit of the greatest number of inhabitants.”&nbsp;



The exchange rate between bitcoin and the US dollar will be freely established by the market, prices may be expressed in bitcoin and tax contributions can be paid in bitcoin, the legal document stated.&nbsp;



The law will take effect 90 days after its publication in the official gazette, the document said. There has been no official announcement on whether the newly approved law has been published in the gazette yet, however most gazettes are published every business day.&nbsp;



<h3 class="wp-block-heading">Latin America goes crypto&nbsp;</h3>



While El Salvador makes it official, other countries in Latin America are sharing similar support for the adoption of bitcoin as a legal tender, too.



Politicians from Brazil, Paraguay, Panama, Argentina and Mexico have expressed interest and support for the cryptocurrency.&nbsp;



A day after President Bukele’s video announcement for bitcoin legislation was broadcasted, Paraguayan Congressman Carlitos Rejala joined in as the first Latin American politician to express interest in adopting cryptocurrency after El Salvador.&nbsp;



Rejala <a href="https://twitter.com/carlitosrejala/status/1401712725886132224" target="_blank" rel="noreferrer noopener">said in a tweet</a>, “As I was saying a long time ago, our country needs to advance hand in hand with the new generation.” And then he said, “This week we start with an important project to innovate Paraguay in front of the world!”&nbsp;



The tweet was attached with a photo of Rejala with photoshopped laser eyes, indicating support for bitcoin.&nbsp;



Additionally, in a direct response to President Bukele’s tweets on June 7, Panamanian Congressman Gabriel Silva said, “This is important. And Panama cannot be left behind. If we want to be a true technology and entrepreneurship hub, <a href="https://twitter.com/gabrielsilva8_7/status/1401965129051389958" target="_blank" rel="noreferrer noopener">we have to support cryptocurrencies</a>.”&nbsp;



Congressman Silva added, “we will be preparing a proposal to present at the assembly,” but did not disclose details further.&nbsp;&nbsp;



<a href="https://twitter.com/FabioOstermann/status/1401988499893587968" target="_blank" rel="noreferrer noopener">Fabio Ostermann</a>, a State Deputy for Rio Grande do Sul of Brazil, and Federal Deputy of Brazil, <a href="https://twitter.com/gilson__marques/status/1402007277662523392" target="_blank" rel="noreferrer noopener">Gilson Marques</a> and <a href="https://twitter.com/IndiraKempis/status/1402129280830742531" target="_blank" rel="noreferrer noopener">Senator Indira Kempis</a> of Mexico City also posted pictures of themselves with laser eyes, indicating their independent support for bitcoin.&nbsp;



<h3 class="wp-block-heading">Iranian opposition to digital assets&nbsp;</h3>



Further away from Latin America, in the Middle East, Iranian President Hassan Rouhani took a different stance in regards to digital assets. Instead of sharing support, President Rouhani discussed the need to preserve and protect national interests in regards to activities in the field of digital currency and cryptocurrencies.&nbsp;



On June 8, President Rouhani said the <a href="https://www.president.ir/en/121560" target="_blank" rel="noreferrer noopener">risks of cryptocurrency trading must be considered</a> and said, “For legalizing the activity of cryptocurrencies and protecting people’s capital in this area, we must think of a solution as soon as possible and lay down and communicate the necessary laws and instructions.”



He also said, &#8220;The mining of cryptocurrencies is strictly prohibited until the end of summer, and the Ministries of Communication and Information Technology and Energy are responsible for cutting off power to these centres.”



In May, the country’s ministry of energy said due to increased domestic electricity use during the hot summers there is a nationwide ban on crypto mining until September and that crypto mining with civilian household electricity is not legal and home miners would pay heavy fines if discovered.

Iran

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