The Islamic republic will support the cryptocurrency operations on registration with the authorities.
Tehran based Mehr news-agency has reported that Iran has issued permits for fourteen cryptocurrency mining farms. The capacity of each of these farms is around 300 megawatts. The decision is also to remove electricity tariffs by 47% to support these authorized centers.
Since July of 2019, Cryptocurrency mining has been an authorized activity in the Islamic Republic of Iran. The country’s Ministry of Industry, Mine, and trade has already issued more than one thousand licenses to these crypto miners. But, all such farms are not in operation currently. In May 2020, Iran licensed iMiner, a bitcoin enterprise of 7.3 million dollars. Reports tell that iMiner has its crypto mining operations established in the Seaman Province of Iran with around six thousand ASIC miners.
Just like other major Iranian cities, Tehran has a bustling subculture of cryptocurrency and blockchain enthusiasts. Many formal organizations, like the Iranian Blockchain Association, exists along with informal groups of lobbyists, students, researchers, and enthusiasts to develop the culture. These active groups meet regularly in local hubs, host podcasts, and operate committed websites. Discussions on the latest technology, tips and warnings about scams, and debating on the virtues is a major part of these meets. Some reports from 2019 also revealed mining operations being set up in mosques.
Nonetheless, Iran is continuously trying to combat several miners who are smuggling their equipment into the country. The deputy head of Iran’s power generation, distribution, and transmission company (Tavanir), Mostafa Rajabi Mashhadi, revealed that the Iranian government has found more than one thousand active illegal cryptocurrency mining farms across the nation.
Miners from all over the world are converging in Iran, because of the highly subsidized electricity rates. Reports and statistics reveal that mining farms in Iran are paying only around $0.01 to $0.05 per KiloWatt-Hour of electricity. However, from June to September, which is the peak summer season, the electricity rates rise by four times. Now, with the above crypto mining-supported decision, the distribution and transmission company will cut the electricity tariffs up to 47% for miners even in the peak summer season.
Mostafa Rajabi also told that this tariff cut aims to provide support to legal mining farms in the peak seasons and for availing incentives, the miners can participate in Tavanir’s recent efficiency plans. An example can be the ongoing projects to replace one million old gas-powered Air Conditioners with energy-efficient ones.
However, the decision comes with a piece of bad news for miners. It says that all the cryptocurrency miners will have to make registrations with the government. Eshaq Jahangiri Kouhshahi, the Iranian Vice-President, announced that miners will have to disclose their identity with the ministry of Industry, Mine and Trade along with the size of their mining farms, and also the type of equipment they are currently using.
Another noticing point is that mining is not the only Crypto activity in Iran and their president is interested in considering a Muslim Cryptocurrency to loosen the United State’s grip on global financial structure.