Iran gov't approves crypto mining 'mechanism'

Iran gov’t approves crypto mining ‘mechanism’

The government of Iran has approved a new “mechanism” for mining cryptocurrency. According to an announcement by the Iran Chamber of Commerce, Industries and Agriculture, the approval will enable the government to better regulate the rapidly-growing crypto mining industry in the country.

The announcement quoted Abdolnaser Hemmati, the governor of the Central Bank of Iran, who stated, “A mechanism to mine digital coins was approved by the government’s economic commission and will later be put to discussion at a cabinet meeting.”

According to the Chamber, the country is also set to settle on the electricity rate which will apply to crypto miners. The Deputy Minister for Energy in the country revealed that a plan to apply the exported electricity rate to crypto miners will be debated and voted on by government ministers soon.

The report comes just days after a local news outlet revealed that the Iranian government has yet to issue any licenses for the importation of crypto mining equipment. Despite claims that the government has been encouraging the industry, a customs official said that the execution of legal directives will only take place once the government approves the importation of crypto mining devices.

Iran’s Economic Commission recently decided to use similar electricity rates for crypto miners as the country does for exported electricity. In its latest meeting, the commission also urged the Iranian government to recognize the crypto industry. Elyas Hazrat, the head of the commission stated:

We do believe that the cryptocurrency industry should be recognized as an official industry in Iran, to let the country take advantage of its tax and customs revenues. By generating cheap electricity, we can provide the required power for digital money miners in the country. The gained income can be used for purchasing foreign exchanges under US sanctions to remove the difficulties we are faced with.

Iran has expressed the desire to embrace cryptocurrencies to boost its economy. It has also looked at cryptos as the best way to fight against U.S. sanctions which the Donald Trump government has doubled down on in the recent months. However, despite the stated desire, the government has been reluctant to formulate and implement regulations to govern the industry. This has kept many potential crypto investors at bay, unaware of what move the government might decide to take next.

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