Jul 6, 2019, 12:31 PM

MP urges gov. to submit cryptocurrency bill amid surge in power consumption

MP urges gov. to submit cryptocurrency bill amid surge in power consumption

TEHRAN, Jul. 06 (MNA) – An Iranian lawmaker called on the government to prepare and submit a bill on cryptocurrencies while reports indicate a surge in the country’s power consumption due to bitcoin mining.

“Unfortunately, there is no specific law to monitor activities around cryptocurrencies in the country and it is essential that the government prepares a specific bill for determining the fate of cryptocurrencies’ mining, such as bitcoin, and exchanging currencies using this digital money and submit the bill to the Parliament so that the power rate of those who are mining across the country would be determined,” MP Ali Akbar Karimi, a member of Iranian Parliament’s Economic Committee, told Mehr News Agency on Saturday.

“Mining cryptocurrencies has become a common and widespread activity in Iran and it consumes considerable power which has caused problems for the country, especially in the hot season.”

A mechanism should be defined to control power consumption and also to punish those who mine using subsidized power rates, he added.

The Central Bank of Iran has just announced a ban on activities around cryptocurrencies while such measure has not still turned into a law, he highlighted, adding, “using digital currencies is a good solution for ditching sanctions but it needs to be regulated.”

The remarks came as reports indicate that bitcoin mining is mushrooming across the country where subsidized power rates are attracting prospectors from countries as far as China, Ukraine and France.

Saeed Zarandi, the deputy industry, mining and trade minister for planning, said Wednesday several government committees were examining the issue, with a number of ministries and the central bank about to make a final decision, PressTV reported.

Bitcoin mining consumes large quantities of energy because it uses costly software to solve complex math puzzles to validate transactions in the cryptocurrency. The first miner to solve the problem is rewarded in bitcoin and the transaction is added to the blockchain or digital ledger.

MAH/4656237

News ID 147250

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