Iran Takes Another Step Towards Embracing Cryptocurrencies

Iran Takes Another Step Towards Embracing Cryptocurrencies After Draft Proposal Introduces Licensing

Iran Takes Another Step Towards Embracing Cryptocurrencies After Draft Proposal Introduces Licensing

It is a well-known fact that over the last three months, the Iranian government is trying to authorize cryptocurrency mining in order to boost the financial status of the nation, while also evading U.S sanctions.

The popularity of crypto-mining in Iran due to low electricity costs has been evident for a while and now, the government is looking to get into the action by generating revenues amidst crippling U.S energy sanctions.

According to recent reports, a new draft proposal over the ongoing regulations of cryptocurrency mining in Iran are doing the rounds, suggesting that official approval was on its way.

It was reported that cryptocurrency miners would need to be registered and licensed, while having to submit documents and information listing out their business activities, the estimated investment in mining, number of employees under appointment, rental agreements of acquired space, the total cost of mining equipment used and the time period of its mining venture. The renewal of the license would take place once a year.

70 Percent Of Them Had Entered The Space To Learn About Local Crypto-mining

Since 2017, after the bullish surge announced the growth of cryptocurrencies across the world, the Iranian mining industry has grown exponentially. Based on a survey conducted by Gate Trade, out of 1600 Iranian crypto-users, 70 percent of them had entered the space to learn about local crypto-mining, while the rest of them directly earned income through mining.

The increased interest in mining gained the attention of the government and the Central Bank of Iran announced the authorization of a legal license in July 2019 after the proposal got approved by Reza Rahmani, Minister of Industry, Mine and Trade in Iran. However, the promise of regulation came with an agenda.

Abdol Nasser Hemmati, Governor of the Central Bank of Iran, mentioned earlier,

“Mining of the international digital currencies should be done based on the price of electricity for export. What’s more important is that these mined currencies should be fed back to the national economic cycle.”