MiningNews

Has Iran got the Right Formula for Regulated Mining?

0

While cryptocurrency, in general, continues to get a hard time for regulators, there are some governments that are happy to embrace certain facts. In Chain, the decentralized and libertarian side of cryptocurrencies are shunned, but the blockchain is King. Then, in Iran, Cryptocurrencies may be illegal, but mining them is not. 

This has led to an interesting situation in Iran where the country is trying to profit and benefit from the introduction of legal cryptocurrency mining but has a problem against the freedom they bring financially. 

Still, while there may be a bit of backward thinking towards crypto, they do at least consider mining to be of utmost importance. In fact, Iran has even started offering a bounty to anyone who exposes unauthorized mining operations in the country.

The question is, though, is Iran doing enough to help itself while simultaneously helping grow and nurture the cryptocurrency and blockchain space. It is one thing to legalize crypto mining, but to put a harsh ban on crypto and then offer rewards for turning in illegal mining, seems to fly in the face of promoting the technology.

Iran began by declaring that the cryptocurrency mining industry would be legal in its country. This was deemed a big step in the normalization of crypto, and seen as a positive way for the government to gain something while promoting crypto in the middle eastern nation.

However, the nuts and bolts surrounding the rules implemented by Iran were a little shady, and actually were so imposing that they were prone to pushing cryptocurrency mining businesses – with their small profit margins – away.

This may well be the reason that there is now news emanating that Iran wants to try and round up those who have decided to work against their laws, but strict, cryptocurrency mining regulations. 

The bounty program discussed is a pretty enticing one too as a spokesman of the Energy Ministry, Mostafa Rajabi said that people who expose cryptocurrency mining operations that are illicitly using subsidized electricity would receive up to 20 percent of the recovery of damages.

Iran’s situation is a hard one to judge. On the one hand, it is, of course, pleasing to see that countries are willing to let facets of the cryptocurrency industry survive and thrive. However, in Iran’s case, it feels as if they have gone too hard at the regulation and not allowed the industry to thrive. 

By further stamping out what they considered illegal mining, and not making provisions to be more inclusive, they could well be strangling, rather than supporting, the move to mining in the country. 

Darryn Pollock
Darryn has been interested in the blockchain and cryptocurrency space since he heard about Bitcoin in 2015. He then decided to use his journalism degree to report on this fascinating fintech space in 2016, and has not looked back since.

Cryptocurrencies to Rescue PornHub, Fiat Fails Again

Previous article

Second Nestlé – Carrefour partnership is proof of IBM’s blockchain platform’s Utility

Next article

Comments

Leave a reply

You may also like

More in Mining