Concerns about cryptocurrency have spread across the world. There are several reasons why governments wish to safeguard their people in some fashion, from hacking and frauds to the mere reality that it’s a very volatile commodity. But there’s another factor fueling this worldwide interest as well: the chance that cryptocurrency may infiltrate international relations. A fantastic example is the news about Iran’s cryptocurrency today.
International relations have traditionally used sanctions as a form of punishment; nations who impose sanctions on other nations do so to economically devastate their target. Sanctions often include a demand and are only removed once the sanction target complies with the demands.
This tactic does not, however, always work. For instance, there are several sanctions in place between the US and Cuba. The United States has imposed an import restriction on Cuba in an effort to dissuade the country from adopting a socialist system of government. Nevertheless, despite the severe restrictions that have been in place since 1960, Cuba has maintained its system of government and continued to export commodities via European firms.
When confronted with sanctions, nations can become rather cunning, and U.S. leaders worry that cryptocurrency would further bolster their attempts. The United States and several other European nations imposed sanctions on Ukraine after its invasion by Russia at the beginning of this year. But as concern about whether the nation might exploit digital assets to evade sanctions rose, legislation to limit this potential was introduced.
Although it doesn’t seem like Russia is really using cryptocurrency to avoid sanctions, these worries seem to have motivated others. Iran is starting its own drive to evade sanctions this week using cryptocurrency.
Iranian crypto imports assist in evading American sanctions
According to reports this week, Iran used cryptocurrency to pay for imports into the nation. One of the earliest examples of a nation circumventing sanctions with bitcoin may be seen in this Iran cryptocurrency news.
This import order was made by the Iranian government for $10 million. It’s unknown which crypto the government utilized as of right now. After the Iranian government changed its cryptocurrency laws to permit imports to be paid for using locally created cryptocurrency, the purchase took place.
According to Iran’s Ministry of Industry, Mine, and Trade, this acquisition is only the first of many to come. According to an official quoted by Reuters, “By the end of September, the usage of cryptocurrencies and smart contracts will be extensively deployed in international commerce with target nations.”
The American administration will need to reconsider its approach to Iran-related sanctions in light of this. There isn’t much regulation related to cryptocurrencies yet. But rest confident that in the light of this information, measures bridging sanctions with cryptocurrency will be given top attention.
It’s important to note that prior to today’s revelation, Iranians have been dealing with the cryptocurrency market for some time. About 1,500 Iranian individuals were deliberately supplied by the American cryptocurrency exchange Kraken in recent years, in flagrant breach of sanctions. Additionally, Binance (BNB-USD), a major cryptocurrency exchange, has intentionally supported this customer base.