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according toCoindesk getsA new draft of Iran's cryptocurrency mining regulations shows that both registered and licensed cryptocurrency mine owners are required to submit information, including a list of business activities, estimated value of investment, current employment status, mine lease agreement, mining machine value as well as the duration of mining; moreover, the license needs to be renewed every year.
Sources in the capital Tehran said the draft was expected to pass official approval.
Over the past two years, Iran’s cryptocurrency mining industry has grown rapidly, withextremely low cost(It can be as low as 0.006 US dollars per kWh) continues to attract overseas and local miners. In contrast, the electricity provided by hydropower stations in the southwest of China is usually about 0.15 yuan (about 0.02 yuan per kWh) during the summer wet season. Dollar). During the freshwater period, electricity costs can reach $0.04 per kWh. The reason why Iran's electricity prices are so low is largely due to the government's subsidies for electricity.
investigationinvestigation, 35% of respondents earn income from mining, and 70% are interested in learning more about the local mining industry. A source in Tehran, speaking on condition of anonymity, said most of the miners he knew were "unknown" and avoided paying taxes by importing equipment on the black market.
In fact, before July 2019, the Iranian government’s attitude towards the crypto mining industryvery contradictory. At the end of June, Iranian authorities confiscated around 1,000 bitcoin mining machines. Prior to this, the Iranian Ministry of Energy also announced that they plan to cut off the electricity supply to crypto mining operations suspected of using state-subsidized electricity.
But after July, the Iranian government began to formally consider the legality of mining. On July 6, Iran’s Information and Communications Technology Minister Mohammad Javad Azari Jahromi highlighted the potential of cryptocurrency mining and called for the formalization of operations in Iran. On the 11th, Abdol Nasser Hemmati, the governor of the Central Bank of Iran, once stated that the Iranian government is planning to authorize cryptocurrency mining, but there are two conditions: 1. International cryptocurrency mining should be based on the price of exported electricity; Cryptocurrencies should feed back into national economic cycles.
promisepromiseTake the legal licensing process. During a cabinet meeting chaired by President Hassan Rouhani, the Iranian government has approved crypto mining as an industrial activity, stating that those involved should obtain the necessary permits from the Ministry of Industry, Mines and Trade. According to the decision, people who use cryptocurrencies should accept the risks, the government and the banking system will not provide any guarantees for them, and in addition, mining licenses in Iran are only available for miners whose equipment requires 30 kilowatts, which may exclude homemade mining equipment or Small assignments.
The decision also states that digital currencies are not allowed to be used in domestic transactions. Like other industrial activities, crypto mining is taxable unless the individual exports the cryptocurrency and brings the income back to the country. This is considered the first step towards the legalization of cryptocurrencies in Iran. Some experts believe that cryptocurrencies can be used to mitigate the impact of severe economic sanctions imposed by the United States on Iran.
Prior to this, the U.S. Congress once worked hard to prevent Iran from getting involved in the field of cryptocurrency mining. Saeed Zarandi, Assistant Minister of Commerce, Industry and Supply of Iranpublicly stated, the U.S. Congress believes that cryptocurrencies are a tool for evading sanctions and money laundering, so it is trying to pass legislation against Iran’s acquisition of cryptocurrencies.
a billa bill, while denying the legality of using cryptocurrencies for trading activities in Iran, the bill further supplemented the details of mining regulations. The bill stipulates that if miners are approved by the Iranian Ministry of Industry, digital currency mining is allowed in Iran under certain conditions, but authorized mines should charge for electricity or natural gas used to generate electricity based on the price of Iranian energy exports; It cannot be mined within 30 kilometers of all provincial centers; if foreigners want to establish underground mining farms in the SEZ, the Iranian Ministry of Industry will have the power to delegate power to the relevant departments of the SEZ.
Although the regulations are more stringent, the voice in the industry is positive. Sources on the ground said he supported the move as it could lay the groundwork for sustainable development of the country's mining industry. For example, if there are too many miners in a region, authorities can encourage miners to distribute operations across the region.
"Iran's power industry is not a private company but a state-owned company, and the authorities need to find a way to balance the mining business without damaging the grid," said a second anonymous source. He remains unconvinced that the legislation will completely deter small miners from joining the mining workforce. He believes that "there will be a large number of underground mining operations, a large number of retail investors mining at home, and the impact on the grid may be caused."
A third local source is optimistic that Iran will become one of the largest players in the world’s bitcoin mining industry within the next year.
