- Iranian Govt has first approved cryptocurrency mining activity within the country
- Following the days of speculations, a local Iranian news media recently confirmed that Iranian Govt is officially authorizing crypto mining as industrial activity.
- Country encouraging Miners to involve in mining activity by obtaining a license from the respective authority
As per the report on July 29, the country’s cabinet is recognizing crypto mining as industrial activity wherein crypto miners will have to obtain licenses from Iran’s Ministry of Industry, Mines and Trade. Unlike other countries where the crypto industry is a subject of uncertain regulations, Iran is encouraging the country’s miners to involve in industry legally.
Crypto Mining As Industrial Activity
It’s worth to note that Iran is following “Crawl, walk and run” approach. The news of authorizing mining industry comes in a wake of Iran’s earlier announcement. A week ago, on July 21, governor of the Central Bank of Iran, Abdolnaser Hemmati confirms that the Iranian govt committee gave green light to cryptocurrency mining. Following both the reports, crypto mining is not just approved in the country but also officially authorizing as industrial activity.
The report on July 21st reads that;
“A mechanism to mine digital coins were approved by the government’s economic commission and will later be put to the discussion at a cabinet meeting.”
Furthermore, it’s essential to note that Iran isn’t encouraging the use of cryptocurrency. The country is still uncertain about cryptocurrency, citing the risk that it carries from the government or local banking sector.
While crypto mining received official recognition, it also states that the mining activities are taxable “unless individuals export cryptocurrencies and bring back the revenues to the country.
Past reports also suggested that Iran is considering its own cryptocurrency to combat US’s harsh economic sanction but there wasn’t a solid proof of Iran doing so. Nevertheless, local media highlights that legalizing crypto mining was indeed the first step of the country.
Moreover, the local news claims that subsidized electricity rate available in Iran encourages Chinese miners to relocate their operation to Iran. Nevertheless, the current rate for the mining farm in Iran is 2 cents per kilowatt/hour. According to the reports, the Govt is likely to set the exported rate for mining farm at 7 cents per kilowatt-hour.