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Over 1,000 Bitcoin Miners Granted Licenses in Iran: Report

Over 1,000 Bitcoin Miners Granted Licenses in Iran: Report

Iran is actively regulating cryptocurrency miners, months after the federal government launched a brand new licensing regime.

The Ministry of Industries, Mining and Trade has issued greater than 1,000 permits to cryptocurrency miners, in response to an official on the Iranian ICT Guild Organization (IIG), an trade physique representing the nation’s computing sector.

However, IIG’s Amir Hossein Saeedi Naeini advised the Financial Tribune on Friday that though there at the moment are licensed cryptocurrency mining operations in the nation, the brand new laws haven’t attracted a lot international funding.

“Our studies show that the crypto mining industry has the potential to add $8.5 billion to the economy,” he stated to native media. “[But] most potential investors have left for neighboring countries, because they offer incentives for crypto miners.”

The Iranian mining trade has grown considerably in latest years, with many operators attracted to the nation due to state-subsidized electrical energy tariffs. Some of the preferred on-line Iranian crypto mining channels have 1000’s of members.

In 2019, the Iranian authorities proposed new laws that may formally acknowledge cryptocurrency mining as a authentic enterprise exercise. Under a draft proposal, operators should submit detailed details about their mining actions in return for a license that may should be renewed on a yearly foundation.

The licensing regime, which acquired formal approval from the Minister of Industry, Mine and Trade final summer time, solely applies to mining farms with tools that consumes greater than 30 kilowatts, shutting out smaller family operations.

Prior to the licensing system, some mining operators advised CoinDesk that they operated inside a local weather of concern because the penalties for non-compliance have been excessive. Those caught have been prone to face fines, the confiscation of their tools and even jail time. Some stated they felt pressured to think about transferring to neighboring international locations.

Last June, officers confiscated greater than 1,000 mining rigs from two operators after the federal government blamed a sudden 7 % surge in electrical energy consumption on the mining trade.

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