The growing interest in cryptocurrency Mining in Iran has led the government to recognize it and introduce new rules for the regulation of the cryptocurrency market. The government is close to passing a bill that finalizes these rules and regulations.
Mining units had been multiplying in Iran attracted by the subsidized rates of electricity and subsequent reduction of expenses of mining and increased profits. The recognition from the government may be due to the benefit of ease of access that it may provide the government to sources of foreign currency at the time of international sanctions against the country, allowing it to circumvent those.
The Iranian Parliament ratified a bill that acknowledged cryptocurrency mining as a legitimate industry. The bill clarifies that the government does consider domestic trade of cryptocurrencies as lawful. It also states that the Central Bank of Iran will not guarantee the value of cryptocurrency and digital coins will not be considered legal tender.
Cryptocurrency mining would be permitted in Iran subject to certain conditions. The miners have to operate outside a 30 km radius (about 19 miles) of all provincial centers except Tehran and Esfahan as these will be subject to even more stringent rules. The miners must secure the prior approval of Iran’s Ministry of Industry, Mine and Trade. The energy used by the mining units will be charged at the rate at which energy is exported from Iran. Miners will be subject to taxes at the same rate as industrial manufacturing units with exemptions being made to those miners who export mined cryptocurrency and return the revenue to Iran’s economy. Regarding the Crypto Mining Equipment, the miners must follow the rules set by Iran’s standardization and communication authorities.
Licenses have not been issued for the import of mining equipment into Iran and a man was arrested on 31st July for smuggling crypto mining equipment worth more than two hundred thousand dollars into Iran.
The regulations were essential in the face of a multitude of illegal crypto activities within the country and may prove to be a positive step for Iran.