Recent Changes on Cryptocurrency Legislation in Iran, Russia and Malta

By Daniel Zo Malta, Russia, Iran, Blockchain, Mining, Ban

The worldwide cryptocurrency and blockchain regulatory framework is undergoing constant changes, backed by big perspective differences, resulting in friendly and anti-crypto laws.

As such, this article will cover 3 recent developments on the crypto regulatory trend, being carried out in Iran, Russia and Malta.

Iranian Crypto Miners Are Threatened with Power Cuts

Not long ago, Iran’s Deputy Energy Minister has shared his opinion on digital currency mining, and states that miners should be charged higher rates for their power usage. At that time, he also mentioned that subsidies should be cut to zero.

Unfortunately, the situation has gotten worse. Based on this, Iran’s state-sponsored power company, Tavanir, has warned cryptocurrency miners that they will be detected and that power cuts will be carried out. The argument behind this threat is that Iran’s power consumption has reportedly increased by 7% on a yearly basis, due to the vast increase in local crypto mining operations. Additionally, a new framework that makes utilizing the national power grid for mining operations has been implemented.

Russia’s Upcoming Cryptocurrency Framework May Allow Trading Activities

Russia’s attitude towards cryptocurrencies has been nothing short of volatile. Generally, the government has shown a negative attitude towards the market, yet no ban has been adopted so far.

For a while, following President Vladimir Putin’s orders, the government and the State Duma have been working on a series of cryptocurrency and blockchain-related laws. This brought on public panic, as the Russian crypto community is unsure of what the changes will be. Recent reports now indicate that cryptocurrency trading will be allowed under the upcoming regulatory framework.

According to Deputy Finance Minister, Alexei Moiseyev, “There is a range of options, from prohibition to the possibility of purchase (…) like with foreign currency, it would be possible to buy and sell crypto, but impossible to use them for payments. After a political decision is made on this issue, we will have the responsibility.”

While the statement implies a ban on cryptocurrency usage as a payment method, enforcing a ban like this is highly-difficult. It is likely that businesses will be prohibited from accepting crypto-based payments.

Malta Is Further Encouraging Blockchain Usage

Cryptocurrency usage and mining are already legal in Malta, which has often been regarded as the world’s blockchain island. Now, recent reports indicate that the Maltese government will soon issue a new law that makes it mandatory for landlords to register their rental contracts on a blockchain platform.

According to the Prime Minister Joseph Muscat, “We will now be showing people the added value of this technology through applying it to something which they will use in their daily lives.” 

So far, Malta has given the green light to several other crypto and blockchain-related initiatives. For instance, government incentives are given to project like these, whereas the Maltese government has also initiated a blockchain scholarship grant for students interested in studying fintech, blockchain, and other innovative technologies.

Based on everything that has been outlined so far, these recent developments once again prove the massive lack of regulatory standardization amongst the world’s nations. A successful worldwide adoption of cryptocurrencies and blockchain tech requires more cooperation, understanding and support from the authorities.