Cryptocurrency News: Iran Legalized Crypto Mining

The Iranian government has officially legalized crypto mining in the country. The updates have come from the local media outlet The Mehr News Agency on July 29.

As per the information, the Iranian government and President Hassan Rouhani who chaired in a cabinet session held on Sunday announced the legitimization of crypto mining as industrial activity in the country. However, the business entities are required to take the prior permission in the form of a license from the Ministry of Industry, Mine and Trade.

Further, the report has also mentioned that cryptocurrency mining offered to be treated like any other industrial activity wherein, it would be taxable unless the digital currencies are sent to other nations and bring the revenues back to the country.

The news follows the plans of the government, earlier when Abdolnaser Hemmati, the governor of the Central Bank of Iranmentioned that the Economic Commission is in favor of the cryptocurrency industry and given the green light in order to let Iran take advantage of its tax and customs revenues and the discussion would put forward to the Cabinet.

In spite of the positive outlook towards the crypto mining business, the regulators still haven’t shown any favorable stance towards the use, holding or transaction of Bitcoin and other cryptocurrencies. Meaning, payments, and transactions are still barred in Iran and using digital money in the domestic transaction are not permissible yet.

As cryptocurrencies are still not the legal tender in the country, reportedly, people are advised to take caution against the risk associated with the digital assets. It is also highlighted that the banks and government are not providing any guarantee and not responsible for any of the loss if it occurs.

Iran Favours Crypto Mining To Circumvent U.S. Sanction?

The report also indicates that many analysts and professionals are interpreting this step as a way to reduce the repercussions of the severe economic sanctions, which were earlier re-imposed on Iran over its nuclear program, by the U.S. President Trump’s government. Just like the sanctions hit Venezuela– which is under the government of Maduro. However, Maduro has introduced Petro cryptocurrency, that is backed by the oil reserves of the country, to circumvent U.S. sanction. Here, Iran has just started to take a few important steps which display the progressive outlook of the government towards the crypto industry.

People in Iran believe that:

“Cryptocurrency is the third alternative through which the wealth can be stored in the country apart from gold and US dollar.”

Interestingly, before legalizing crypto mining as an industrial activity, In June, the Iranian government already shutdown two crypto mining farms, reasoned them out as unauthorized mining businesses. As per BBC report, the government authorities confiscated around 1000 bitcoin mining units at that time because the demand for power spiked up around 7% in the country and as per the indications cryptocurrency mining believed to be the main cause of the huge energy consumption. 

Iran Becoming Heaven For Crypto Miners

Crypto Miners from other countries including China are getting encouraged to set up their mining farms in Iran due to its low-priced electricity. Reportedly, the Iranian government is under the process of coming out with the new electricity price rate for the miners which would be undoubtedly on the higher sides for them but still comparatively on the lower side. The information denotes that the present electricity charges in the country are around 2 cents which are expected to increase for cryptocurrency miners at $0.07 per kWh.

Image by Chickenonline from Pixabay

Tags: Bitcoin News, Bitcoin, Iran, U.S. Sanctions, China, Crypto Mining, Cryptocurrency, Energy Consumption, Maduro, Venezuela, Petro, Oil Reserves, Abdolnaser Hemmati, Central Bank Of Iran, President Hassan Rouhani, President Donald Trump