Cryptocurrency Mining and Trading in Iranian Criminal Law and the Common Law Legal System

Abstract

In Iran, the mining and trading of cryptocurrencies are regulated in a specific manner. In 2019, the Iranian government officially recognized cryptocurrency mining as a lawful industry, subject to obtaining a license from the Ministry of Industry, Mine, and Trade. Electricity tariffs for cryptocurrency mining are calculated based on export rates, and the use of subsidized electricity for this purpose is prohibited. On the other hand, cryptocurrency trading is subject to the supervision of the Central Bank of Iran and is permitted only through authorized exchanges. The use of cryptocurrencies as a means of payment within the country has been declared prohibited, although ownership and mining of cryptocurrencies are permitted. The laws and regulations in this field are continuously evolving and being updated in order to keep pace with rapid technological developments and market demands. Furthermore, within the common law legal system—encompassing leading countries such as the United States and the United Kingdom—cryptocurrency-related regulations have been developed in a broad and detailed manner. In the United States, regulatory oversight is exercised through multiple authorities, including the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Financial Crimes Enforcement Network. These institutions have enacted regulations governing the supervision of cryptocurrency mining, trading, and use. In the United Kingdom, regulatory oversight is carried out by the Financial Conduct Authority, which supervises cryptocurrency-related activities and subjects them to anti–money laundering regulations. The use of cryptocurrencies as a means of payment is permitted in these countries; however, it is conducted under strict regulatory frameworks and close supervision. This article examines and compares the regulations governing cryptocurrency mining and trading in Iranian law and the common law legal system. The purpose of this study is to analyze the similarities and differences between these two legal systems in their approaches to cryptocurrencies and to propose recommendations for improving existing regulations. Understanding these similarities and differences can contribute to the formulation of more effective policies and the creation of a safer and more transparent environment for cryptocurrency-related activities.