According to reports, the Iranian government has begun granting licences to cryptocurrency miners in accordance with the new “complete and precise” legal framework adopted last week. The process of issuing licences to various crypto mining enterprises was previously put on hold due to power usage and problems with illegal mining.
According to local media, Iran’s Minister of Industry, Mine, and Trade, Reza Fatemi Amin, claimed his department is now authorised to resume issuing permits for cryptocurrency mining. He was reported to have said:
During a meeting last week, the Iranian government adopted a set of “complete and precise” crypto rules that include guidelines for mining.
The organisations that apply to mine cryptocurrency assets may obtain an operational licence and an establishment licence based on government regulations.
Mohsen Rezaei Sadrabadi, secretary of the government’s working group on cryptocurrency, provided some information about the recently approved framework for regulating cryptocurrencies, including the fact that mining operations can now apply for a licence and use the cryptocurrencies they have produced to pay for imports.
Before a company in Iran can begin mining cryptocurrency, it must first get both an operational licence and an establishment licence. The first makes the entity a legitimate cryptocurrency miner, while the second gives it the go-ahead to actually begin mining.
He added that the new regulatory framework has rules that address large-scale crypto mining activities and that the Ministry of Industry, Mine, and Trade is in charge of giving permits to cryptocurrency miners. Additionally, there are provisions regarding the energy supplied to the mining sector, with a focus on renewable energy.
Rezaei Sadrabadi further pointed out that the government has opted to designate the central bank as the industry’s key regulator. However, he thinks that since the crypto ecosystem includes more than just cryptocurrencies, regulation of the industry should be multifaceted and not be under the control of a single regulator.
The government of Iran approved cryptocurrency mining as an industry in 2019, but the central bank of Iran outlawed cryptocurrency trading within the nation. Following the establishment of a regulated framework, crypto miners were required to obtain a licence, identify themselves, pay higher electricity prices, and sell their produced bitcoins to the government directly. Iran changed several rules in July to make it simpler for cryptocurrency miners to get renewable energy. The Iranian government ordered authorised cryptocurrency miners to temporarily cease operations in December of last year as a result of severe weather having a negative impact on the nation’s electrical grid during the cold months. The national electrical utility then declared a four-month ban on cryptocurrency mining in May, but it was later reversed after authorised cryptocurrency mining facilities voluntarily stopped operating to reduce the demand for electricity.
Under the former regulatory system, Iran issued more than 1,000 permits for cryptocurrency mining. In May, Iranian authorities announced the closure of about 6,914 illegal crypto mining operations. The Iran Power Generation, Distribution, and Transmission Company, or Tavanir, asserted that over 85% of the country’s energy consumption was used for illegitimate cryptocurrency mining. It has promised to take severe action against unlicensed cryptocurrency miners, and since March, approximately 10,000 unlawful mining equipment have been seized.
- Iran begins issuing licences to cryptocurrency miners under a new regulatory framework
- Check all news and articles from the latest Business news updates.