Companies around the globe are willing to invest in crypto mining. However, due to U.S. sanctions, it won’t be easy to find companies that are ready to invest in Iran. Moreover, sanctions created a lot of problems for the local economy. Despite all the challenges, the industry is evolving, as can be seen from the information stated below. Let’s have a look at the local crypto mining industry.
Iran made an important decision. As a result, industrial-scale power plants will be able to operate as Bitcoin miners.
However, power plants won’t be able to use subsidized fuel. Moreover, they must comply with approved tariffs. Another requirement is to have the necessary license.
It is worth noting that a Deputy Managing Director at Tavanir, Iran’s Power Generation company, explained this decision. According to Mostafa Rajabi Mashhadi, they will not allow anyone to misuse tariffs provided for the agricultural and industrial sectors to produce Bitcoin.
Crypto mining and legal aspects
As stated above, crypto mining is a profitable business. For example, the country’s Ministry of Industries, Mining, and Trade, issued 1,000 licenses for crypto mining in the period between July 2019 and January 2020. Importantly, the Iranian government authorized crypto mining as an approved industrial activity in July 2019.
It is worth noting that the tariff scheme for crypto miners in Iran depends on market factors, such as fuel prices in the Middle East. It is not a secret that mining requires a lot of power. Nevertheless, electricity in the country is very cheap compared to the rest of the world. This is good news for crypto miners. As a reminder, Bitcoin is the biggest cryptocurrency when it comes to market capitalization.
The country’s government is trying to limit illegal cryptocurrency mining. For example, people who expose illegally operating cryptocurrency mining companies in the country are eligible to receive up to 100 million Rials, or $2,375.
Last but not least, local authorities are willing to develop the crypto mining industry in the country.