News Iran poised to legalize cryptocurrency mining as potential path...

Iran poised to legalize cryptocurrency mining as potential path out of US sanctions trap


- Advertisment -

Iran has moved to legalize the mining of bitcoin and other cryptocurrencies, recognizing the energy-consuming digital coin mining as a legitimate industry – and potentially a way around the US sanctions crippling its economy.

“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,” said Central Bank of Iran (CBI) Governor Abdolnaser Hemmati on Sunday.

Government ministers are poised to vote on a plan to apply an exported electricity rate to crypto-mining “farms,” according to Deputy Minister of Energy Homayun Haeri. While Iran has been dubbed a “heaven for miners” due to its ultra-cheap, subsidized electricity, the free ride is coming to an end.

“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,” commission head Elyas Hazrati told Mehr News on Monday. “By generating cheap electricity, we can provide the required power for digital money miners in the country. The earned income can be used for purchasing foreign exchanges under US sanctions to remove the difficulties we are faced with.”

The decision may serve as the ideal compromise between mercenary bitcoin miners, who move their crypto farms to Iran to take advantage of subsidies meant to supply households with cheap electricity, and anti-crypto hardliners, who want the practice banned altogether for exploiting those subsidies.

While authorities were seizing thousands of bitcoin mining machines and cutting off power to crypto-mining operations as recently as last month, their apparent new embrace of the technology suggests they’ve come to terms with its utility as a (relatively) stable way for Iranians to store their assets, with US sanctions stoking inflation of the rial.

Iran began taking steps toward launching its own cryptocurrency last year, concerned about the US’ ability to exert pressure on crypto exchanges, which have been forced to freeze or close accounts belonging to Iranians in the past.

Think your friends would be interested? Share this story!



Please enter your comment!
Please enter your name here

Latest news

Crypterium Signs New Partnership with Apple Pay, Unveils its Virtual Card

In late 2017 when Bitcoin and other digital assets became quite popular, the consensus amongst enthusiasts was...

Top 5 Crypto Invoice Services for Making Business Administration Simpler

In the current economic landscape, the cryptocurrency’s worldwide adoption is picking up at an ever-increasing pace.

Data-Intensive Sector Has A Lot More To Explore With Blockchain Technology

Blockchain technology in Data-Intensive sectors is gaining huge recognition in the market. It is used in building...

4 Tips on How To Succeed on Bitcoin Trading

Bitcoin is a type of cryptocurrency which has grabbed the attention of countless people from different countries....
- Advertisement -

The First Cryptocurrency Bank License Is Now Granted

This is a historic development. A milestone in Bitcoin's path to broad acceptance and recognition. The State...

Yield Farming Program “Volcano” Kicks off Dutch Auction for Cryptokitties KittieFIGHT Game

In the fall of 2017, along with the rallying of Bitcoin and other digital assets, Cryptokitties dominated...

Must read

- Advertisement -

Read Next
Recommended to you