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Cryptocurrency mining is officially being recognized as an industry within Iranian borders.
It was revealed by the Chamber of Commerce, Industries, Mines and Agriculture that crypto mining was approved on Sunday by an economic commission. In an official statement, the governor of the Central Bank of Iran, Abdolnaser Hemmati said that the government is currently looking for ways to regulate the digital asset mining activity to conform to its existing legal structure.
Hemmati revealed that a means to mine digital coins was permitted by the government’s economic commission and will subsequently be put to discussion at a cabinet meeting.
In the same way, Homayun Haeri- the deputy minister for electricity and energy-alleged that government ministers will cast votes on a quantity to authorize an electricity rate for mining farms.
Over time, the Iranian government has been indecisive on whether to accept mining as an industry or not. Interestingly, just last month, it was reported that two mining farms were taken possession of and shut down by authorities.
Also worthy of note is fact that the energy minister has been quoted in the past declaring that that the government should not subsidize crypto mining efforts.
According to Hemmati, Crypto mining will need to go by the export price of electricity concurring with the prearranged executive law. He also further added that miners will not be able to use electricity from the profoundly subsidized internal grid. Going by his report, Iran exports electricity to other neighboring countries at prices which are 40 to 100 times higher than its internal power price.
This recognition, however, will be gladly celebrated by crypto enthusiasts, as the Iranian region has always been attractive to miners as a result of cheap electricity rates available.
Using Crypto legal in Iran?
Although Crypto mining has been recognized and allotted a speculative green light in Iran, it is uncertain if Iranian government officials are shifting their position on using cryptocurrencies for local payments. Even if this position is revised, it is unclear how the digital currency will be regulated in Iran.
Interestingly, Local industry stakeholders are actively resisting the recommendation from the central bank in January which advised the Iranian government to ban using crypto for local payments.
Despite the possibility of a ban, two Iranian nationals have been placed on the U.S. State Department Office of Foreign Asset Control (OFAC) sanctions list for bitcoin activities explicitly.
Ali Khorashadizadeh and Mohammad Ghorbaniyan were sanctioned in 2018 for their supposed roles in enabling payments for the Sam Sam ransomware.
Earlier in July, the Iranian assistant Minister of Industry, Trade, and Supply declared that the United States Congress was looking hard to stop the country’s exertions towards Crypto and Bitcoin mining.
According to the him, the US was stopping the country from accessing a tool that would help Irandodge sanctions. The grave inflation suffered in the local fiat currency has drawn more Iranians towards Crypto investments. The Iranian rial (IRR) is struggling amid a standoff on the nuclear crisis deal.