By Shelly Melancon (Switzerland)
In a sudden and unexpected move, Iran begins distributing licenses for crypto mining operations across the country’s capital, Tehran and other cities in the country. The ministry of Industries, Mining and Trade is responsible for the issuance of the mining licenses. So far, it has released 30 mining licenses with some cities getting more and some less. Iran’s capital, Tehran, however, got one license.
Earlier this month, Tokenhell had reported a crackdown by the Iranian government on mining operations in the country. Although the country boasts of low-cost electricity, the government had bemoaned the effects mining operations were having on the general power station. The Iranian government had gone on a seizing spree confiscating mining tools around the country. Household miners were not left out as well. According to reports, the government planted spies to monitor their activities. It had also imposed huge fines on those who were caught flouting the government’s directive.
Iran Releases 2579 Industrial Permits Across Several Cities
The mining licenses were distributed based on the capacity of each region. The Semnan Province in the country got six. Other cities got four while Tehran secured one license. Reports revealed that the concerned ministry also distributed permits for industrial mining units- about 2579 of them. The latest development is an attempt by the Iranian government to clothe crypto mining activities with a legal toga rather than an outright ban on mining operations. The ministry’s report said mining companies who are eligible have to secure industrial mining units permit first- which they have to set up in 12 months- before they can apply for an operating license.
Also read:In light of this, Chinese Bitcoin mining companies may begin to migrate to the Middle East country following their exodus from China, where they have been forced to shut down their operations. China has tightened the noose around cryptocurrencies and Bitcoin mining which has caused miners to leave the country in droves with most of them looking at setting sail in Texas, Serbia and a few other countries.
China’s Ban Affects Global Bitcoin Hashrate, Iran to the Rescue
China’s mining ban had seen the global hashrate for Bitcoin mining dropped drastically. Reports indicate that it has recovered, though still not up to its former levels. Iran’s latest approach to mining may ease the mining difficulty of the asset as the mining companies may add the country to their bucket list. Its low-cost electricity is an added advantage.
While mining operations now have the authorities’ support, illegal mining is still blacklisted. The trade ministry’s report further says mining companies would however pay higher electricity costs than household or commercial consumers. Financial experts have opined that Bitcoin mining could generate as much as $1 billion for the country to hedge against the economic crisis it is currently facing. Iran is in the throes of unemployment and US sanctions which affected their oil imports by 70%
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