Cryptocurrency mining has come a long way to turn into a billion-dollar industry that has expanded alongside the growing demand for digital currencies. As the crypto industry continues to mature, many nations are trying to seize the opportunity and embrace crypto mining as an upcoming industry with great potential.
The new trend has seen governments try to foster the growth of the mining industry either by drafting crypto-friendly regulations or by providing cheap electricity, or both. Some nations, however, do not entertain cryptocurrency use but allow cryptocurrency mining. Iran is one such nation.
The nation has been trying to profit and benefit from the introduction of legal cryptocurrency mining but has a problem against the freedom they bring financially. It legalized crypto mining back in July 2019, and miners had to get a license from Iran’s Ministry of Industry, Mine and Trade.
The ministry then went on to give out more than 1000 licenses in a matter of months trying to promote mining and attracting foreign investments.
New crypto mining regulations?
Now, a recent report from local news outlet Arzdigital states that the nation’s president Hassan Rouhani has called for a new strategy for the emerging crypto mining industry. The recent move is being considered an effort to prosper economically amidst the sanctions placed by the U.S.
Rouhani has asked officials from the nation’s energy department, the central bank, and information and communication technology ministries to draft a miner friendly scheme that would include the nation’s policy towards mining farms located within the country, along with the taxation laws related to this sector.
The news comes days after the nation proposed a bill that would require all crypto exchanges serving the nation to be licensed by the Central Bank of Iran and follow legacy foreign currency exchange guidelines. The move was a result of the nation’s efforts to crack down on currency smuggling operations and prevent capital from leaving the nation.
Miner friendly moves
Earlier this month, Iran regulators gave a green light to the nation’s largest crypto mining farm set up by Turkish company iMiner. The farm consists of 6000 machines and has been allowed to operate with a massive computing power of 96,000 terahash per second.
To further attract miners, the nation had dropped its electricity tariffs for miners, where miners would pay an average fixed sum of $0.08 per kWh at some times of the year, $0.04 per kWh during eight cold months of the year, and $0.16 per kWh in the remaining months when power consumption increased across the nation.
As of now, Iran has a 4% share in bitcoin’s total hashrate, which according to the Bitcoin Mining Map, is more than double of what it was last year.
While there is no clear answer to why the president wants to draft new mining regulations, it is quite evident that the nation wants to develop and benefit from this industry. However, the new strategy could just be another way of ensuring that the government has tighter control over the mining industry and also prevent excessive capital outflow.