After some months of debate on the status of crypto mining, the state of Iran has officially recognized mining as a legitimate industry in its country.
The Iran Chamber of Commerce, Industries, Mines and Agriculture, has revealed that a government economic commission gave its approval on crypto mining on Sunday. The government is currently seeking to develop regulations for this sector and to include it in its existing legal framework.
“A mechanism to mine digital coins was approved by the government’s economic commission and will later be put to discussion at a cabinet meeting,” stated Central Bank of Iran governor Abdolnaser Hemmati.
Homayun Haeri, the deputy minister energy for electricity and energy, also said that a measure for the electricity rate for mining farms will be voted on by the government’s ministers. The decision to impose a tariff on electricity comes after the government first threatened to cut off power to miners.
Iran has been up until now hesitant to give its approval to the mining industry. Just last month, the authorities shut down and seized the equipment of two mining farms.
In the past, Haeri has also stated that the government should not support crypto mining operations.
But Iran has cheap electricity prices, which is why many mining farms have been attracted to start their operations here. As crypto mining- especially Bitcoin– incurs a high energy consumption, it is not feasible to mine to make a profit as you might end up paying most of it on electricity bills.
While it appears that for now crypto mining has been approved by Iran, there is the regulatory aspect which has not yet been defined by the government. Also, things are not yet clear on the use of cryptocurrencies for domestic payments.
The central bank was against using crypto for domestic payments, making the proposal at the end of January. The local community fought back against the ban by submitting to the central bank a joint proposal that pointed out 51 problems in the regulator’s crypto ban draft.