Reports suggest that the Iranian Government has issued over 1,000 mining licences to cryptocurrency miners in the country. The development has come days after Muslim nations like Turkey, Malaysia, and Iran discussed the introduction of a cryptocurrency as an alternative to the US dollar.
Crypto Mining Could Revive Iran’s Crippling Economy
Amir Hossein Saeedi Naeini, an official with Iran’s ICT Guild Organization, said in an interview that although crypto mining is a new industry, it has found traction amongst many Iranians. He revealed that the Iranian Government had taken cognizance of the fact that miners need to obtain a license for mining activities, which is why the Ministry of Industry, Mine, and Trade had issued over 1,000 licenses to crypto miners in the country. He further added that the cryptocurrency mining industry has the potential to add over $8.5 billion to the country’s crippling economy, which has suffered over the years due to several US sanctions.
Electricity Tariffs Pose a Major Challenge
The Iranian Government officially authorized the crypto mining industry last year in July. Consequently, it led to the set up of a large number of mining farms in the country. However, high electricity tariffs combined with stringent regulations have kept many small investors away. Amir Hossein Saeedi Naeini opined that the operating conditions in the country shouldn’t be such that favour only large investors to enter and exploit the crypto mining industry. Instead, it should accommodate all miners. He further emphasized that the modification of the electricity rates and terms could substantially help the cryptocurrency mining industry, thereby, leading to higher revenue generation.
The crackdown by the Iranian Government
After the Iranian government recognized the crypto mining industry, various government authorities cracked down on cryptocurrency miners, who were allegedly using subsidized power. Authorities had also seized almost 1,000 Bitcoin mining machines in two abandoned factories that were allegedly using the subsidized electricity provided by the government. However, things seem to brighten up for crypto enthusiasts in the country after the Iranian President Hassan Rouhani proposed the creation of a unified cryptocurrency for Muslim countries to leaders of other Muslim countries.