- The Iranian government has issued 1,000 plus licenses for cryptocurrency mining as of January.
- Iran will also provide an exemption of 47% on the electricity tariff for the benefit of government registered crypto miners.
- Cryptocurrency mining has been an government sanctioned activity in Iran since July 2019.
Iran seems to be the latest country to join the digital currency bandwagon. The country has reportedly issued permits for 14 Bitcoin mining farms, and to facilitate operations for miners, it will also provide an exemption of 47% on the electricity tariff in order to ensure smooth and convenient functioning of government registered cryptocurrency mining centres.
As per a Cointelegraph report, as of January the government authorities have issued 1,000 licenses for operation of crypto mining activities.
Boost to Crypto Circuit
With this momentous decision, crypto mining in Iran is set to scale up several notches with the government’s nod to power plants to for mining cryptocurrencies such as Bitcoin (BTC). Ever since crypto mining was officially approved in 2019, Iran has ensured that only licensed stakeholders who fit the bill are allowed to engage in mining. Interestingly, as a part of the campaign to only allow government registered crypto mining, the government has also offered rewards worth approximately 100 million rials ($2,375) for exposing illegal entities.
Iran: A Crypto Hot spot
For starters, Iran boasts of one of the cheapest electricity rates in the world, which makes it a lucrative location for Bitcoin miners.
Babak Behboudi, co-founder of digital asset trading platform SynchroBit Hybrid Exchange, expressed with Cointelegraph that this move is a significant step to provide a fillip to Iran’s legalised crypto mining industry.
Behboudi further emphasised that it’s also crucial that latest technologies are made accessible to stakeholders to make the entire energy operations energy efficient and create high returns on investment.
Speaking of economic revival, experts feel that a key issue is how the government wants to allow foreign investors to participate in BTC mining operations within its borders.
Earlier this year, Hassan Rouhani, Iranian president, called on officials at the Central Bank of Iran, Ministry of Energy, and Ministry of Communications and Information Technology to formulate a national strategy for crypto mining. This is being viewed as an economic recovery plan, which has become more pronounced owing to hyperinflation as well as Covid 19.