As per sources, the government of Iran has allowed licenses to over 1,000 cryptocurrency mining entities. These licenses are issued by the Iranian Ministry of Industry, Mining, and Trade. This decision has given benefits to large firms established in the country. On the contrary, many small investors are away from the project due to higher electricity taxes which have proved to impede them.
In an interview with IBENA news agency, an official with ICT Guild Organization of Iran said that the industry of cryptocurrency mining is new and has attracted many people in Iran towards itself. Amir Hossein Saeedi Naeini stated that:
“The Ministry of Industry, Mine and Trade has issued more than 1,000 licenses for cryptocurrency mining in the country.”
Saeedi Naeini further added that Iran’s researches show that the crypto mining industry can generate $8.5 billion for the economy.
Electricity Costs – A Leading Impediment
As the country is grappling with economic problems and the U.S. has sanctioned, Saeed Naeini believes this decision will help improve Iran’s economy. However, he discussed that the electricity cost is a leading impediment for the miners in the country. Moreover, a high number of large mines have been established. To the news agency, he said:
“High electricity tariffs plus stringent regulations have made the sector less appealing for small investors.”
He said that the industry’s operating conditions should be in a position so that everyone, from large to small firms, can enter in it. Further, he emphasized that modification in electricity costs and terms could help boost the cryptocurrency mining industry and can generate a significant amount of revenue.
Cryptocurrency Mining Law of Iran
The cryptocurrency mining industry of Iran is established last year and was officially recognized by the government of Iran. It is necessary that ahead of operations, crypto miners should have a license issued by the Ministry of Industry, Mine, and Trade.
Furthermore, the decision of recognizing the industry faced severe criticism by several authorities in the government. The authorities accused crypto miners of consuming more electricity. Last year, in June, it was reported by the state’s television that the authorities had seized about 1,000 mining machines. These mining machines were seized in two deserted factories on the charge of consuming subsidized electricity of the government.
However, the official Saeedi Naeini said to IBENA that debate is under discussion for creating a favorable environment for the cryptocurrency miners.