Iran close to ratifying rules regulating cryptocurrencies, mining

Getting your Trinity Audio player ready...

The Iranian government is very close to passing new regulations that will govern cryptocurrencies and crypto mining. This comes just days after the government officially granted permission for crypto mining to occur within the country.

As reported on PressTV, on August 4 the Iranian cabinet ratified a bill that had already been approved by the legislative body that would formally create the industry of crypto mining. This made it so that it is legal to trade in cryptocurrencies as well as mine for coins.

In addition, it called for a major change in how digital currency was to be viewed in Iran, especially within the banking industry. However, the bill did not call on the banking system to recognize these digital coins as legal tender. It also did not guarantee that the Central Bank of Iran would guarantee cryptocurrency values.

The biggest change was that it officially authorized the mining of digital currencies. This has been outright banned as recently as just a couple of weeks ago. Law enforcement officials had seized 1,000 machines that were being used to mining these currencies. While the excessive use of electricity was a major concern that led to the arrests, the government had not been receptive to these types of mining operations. That clearly has changed.

Mining has been officially authorized in Iran, but there are limitations. According to the bill, mining will be allowed inside the country as long as they have obtained approval from the ministry office. This means that a person simply can’t set up a group of machines and go into business for themselves. They are required to gain a license.

These mining farms also have restrictions on where they can set up operations. According to the bill, a mining center is not allowed to be in business within 30 kilometers of any major city with the exception of Teheran. The reason behind this appears to be related to drawing off existing power grids that are overtaxed by these mining operations.

Those who are setting up these operations will be required to pay fees to conduct operations. These fees will not only come from gaining a license, but these operators will be required to pay additional costs for the large amount of electricity that is needed for these mining operations.

This move appears to be prompted by the growing popularity of these mines as well as due to the strict sanctions that the United States has imposed. Iranian can mine for coins and gain currencies that can be used without restrictions across the globe.

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.