Iran Authorizes Crypto Mining On Cabinet Meeting

By Rishma Banerjee

After a cabinet meeting on the 28th of July, Iran has finally decided to authorize crypto mining in the country. The Sunday cabinet session chaired by Iran’s President Hassan Rouhani declared that any interested company or firm will be required to apply for and receive a license from the local Ministry of an Industry, Mine and Trade.

The main topic of concern about crypto mining in Iran boils down to the rules and regulations regarding crypto in the country. Thankfully that has also been addressed.

However, Iran continues to keep strict restrictions on crypto trading. Subsidies are being given to crypto mining activities, only and these can be considered baby steps towards a more inclusive setup.

With subsidised electricity for crypto mining, about half-a-cent per kilowatt, the process of mining becomes very profitable. Apparently it has even prompted seasoned miners from China to relocate their operations to the country. The hype for crypto mining in Iran started a little less than a month ago when the bill was first announced. It sparked one too many enthusiasts to believe it immediately, but it seems their hope was not in vain.  Abdolnaser Hemmati, the governor of the Central Bank of Iran, indicated that the Economic Commission had approved the idea in principle and would put it forward for imminent discussion by the Cabinet.

The Commission, according to Hemmati’s statement, holds that the “cryptocurrency industry should be recognized as an official industry in Iran to let the country take advantage of its tax and customs revenues.”

Crypto enthusiasts believe that soon there will be legislation that would make crypto trading legal in Iran. It is clear that the primary reason behind the new bill is the adoption of blockchain. The additional tax revenue is extremely useful for the Government, now more than ever, in the wake of the crippling US sanctions.