Cryptocurrency mining became a controversial topic in Iran last year, however, the government took a gentler stance towards miners as it decided to regulate instead of banning them. Last week, the Ministry of Industries, Mining and Trade issued more than 1,000 cryptocurrency mining licenses.
A report published on Jan 24 by the Banking and Economic System Reference Media (IBENA) revealed that a member of the Information and Communications Technology (ICT) blockchain commission, Amir Hossein Saeedi Nai, revealed the number of crypto mining licenses issued.
The ICT’s blockchain commission’s member stated that individuals who seek to mine cryptocurrencies in Iran must first obtain a license from the government.
Additionally, he revealed that more than 1,000 licenses were issued so far and that numerous mining farms continued their business. Nai believes that if the crypto mining sector in Iran reached its full potential, it would contribute $8.5 billion to the country’s economy.
Impact of cryptocurrency mining on Iran
Economic sanctions by the United States hit several countries in the past few years, including Iran who struggles to maintain stability. For that reason, both governments and citizens turned over to cryptocurrencies as a form of evading sanctions or storing savings.
According to Nai, Iran benefits from foreign exchange volumes and cryptocurrencies help with establishing trade while at the same time importing foreign currency. He also mentioned the benefit the Iranian government has from using cryptocurrencies as a way to avoid economic sanctions.
The representative noted that the ICT Guild Organization for blockchain and crypto is on its way to developing suitable cryptocurrency mining conditions in Iran. According to Nai, mining activity in the nation will go through a renaissance as better electric rates and cooperation will motivate miners to continue their operations.
While Iran provides one of the cheapest electricity prices in the world, starting from $0.007 per kilowatt-hour, several blackouts and shortages prevented miners from normally running their business.
In that regard, regulators and government agencies at the time took a strict approach towards miners in order to maintain stability for the energy sector. Nevertheless, crypto mining operators and the government are now on better terms with the help of a new positive approach.