Iranian govt. authorizes crypto mining

TEHRAN, Jul. 29 (MNA) – In a Sunday cabinet session chaired by President Hassan Rouhani, the Iranian government authorized crypto mining as an industrial activity.

The Iranian government endorsed crypto mining as an industrial activity and noted that those involved should take required licenses from the Ministry of Industry, Mine and Trade.

According to the decision, those who use cryptocurrencies should accept its risks and the government and banking system will not provide any guarantees for them. It also notes that using digital money in domestic transactions is not allowed.

Crypto mining, like other industrial activities, is taxable unless individuals export cryptocurrencies and bring back the revenues to the country, highlights the decision.

This is deemed the first step to legalize cryptocurrencies in Iran. Many experts believe that cryptocurrencies can be used as a means to mitigate the effects of US-imposed harsh economic sanctions against Iran.

Low-price electricity has encouraged many to mine cryptocurrencies in the country; even some reports indicate that miners from other countries such as China are establishing farms in Iran. The government is yet to approve the final price rate for miners. According to reports, the government is likely to set the exported rate for mining farms which would be around 7 cents per kilowatt-hour; currently the rate is around 2 cents.

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