Crypto Mining

Iranian trade body issues 30 new block reward mining licenses

The Ministry of Industries, Mining and Trade in Iran has issued 30 new digital currency mining licenses, in a move that could pave the way for an expansion of the regulated mining sector in the country.

The licenses have been classified according to the province in which they have been granted, with six being issued in Semnan Province. Alborz Province was next with four new licenses, followed by Mazandaran, East Azarbaijan, Zanjan, and Tehran Provinces.

According to local media reports, some 2,579 industrial mining permits were issued, with the bulk of those falling across Zanjan Province, Fars Province and West Azerbaijan.

The new licenses are required for businesses hoping to mine digital currency in the country, a legal requirement in Iran since laws were introduced in July 2019. Despite legislating for a legal mining sector, the government in Iran has been tackling illegal digital currency miners in recent months, citing pressures on the country’s power infrastructure, blamed in part for recent blackouts across the country.

Digital currency mining companies that have secured licenses are required to pay a higher rate for energy costs compared to other types of commercial and residential users, in part as a bid to stem the impact of mining on the national grid infrastructure.

The move follows an announcement from the country’s president, Hassan Rouhani, back in May, suggesting that a ban would be introduced on all digital currency mining in Iran until September 2021.

As a result, law enforcement agencies in Iran have been cracking down on illegal mining operations, with confiscation of some 7,000 rigs from a block reward mining farm in Tehran over the past week. The particular farm in question was regarded as a significant pressure on the national grid, which has been responsible for significant power outages across the country in recent months.

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