By The Chamber of Commerce, Industries, Mines and Agriculture reported that on Sunday 21st July, an economic commission in the Iranian government approved the mining of cryptocurrencies. The government is looking for new ways to regulate the mining activities within its existing legal structure. Anyone involved in crypto mining now has to obtain a license from the Ministry of Industry, Mine, and Trade.
The decision was passed in a cabinet session on Sunday, chaired by President Hassan Rouhani, the Iranian government authorized crypto mining as an industrial activity.
“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,” Central Bank of Iran governor Abdolnaser Hemmati said in a statement.
Homayun Haeri, Deputy Minister for electricity and energy similarly stated that government ministers would vote on a measure to approve an electricity rate for mining farms.
The government of Iran has been indecisive on whether or not to approve crypto mining as an industry. Last month, the authorities seized and shut down two mining firms. Haeri has also suggested that the government stops subsidizing efforts made towards crypto mining.
Miners find the region suitable for their mining activities because of the cheap electricity rates. It has even been reported that miners from foreign countries such as China have set up mining firms in Iran. Reports say that the government will set up the exporting rate for mining firms at 7 cents per kilowatt-hour, from the current 2 cents.
The Gordian knot in the Use-Case of Crypto in Iran
Iranian officials are still unclear on whether they are changing their stance on the use of cryptocurrencies for domestic payments, and if so, how? Their indecisiveness comes despite the tentative green light for crypto mining in Iran.
The central bank recommended that by the end of January, crypto should be barred from being a means of making domestic payments. Stakeholders in the local industry are, however, pushing back against such a ban. The government and the banking system will not provide any guarantees for the risks that come with the use of cryptocurrencies.
According to many experts, this move is the first step towards making cryptocurrencies legal in Iran. Experts additionally noted that the move would be of great help in countervailing the crippling impact of the state sanctions that the United States has imposed against the country.
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