Iran officially legalizes bitcoin mining, low electricity prices or attracts a large number of miners

On July 23, Iran has officially recognized that cryptocurrency mining is a legal industry in its territory.

According to the Iran Chamber of Commerce, Industry, Mining and Agriculture, the Economic Commission approved cryptocurrency mining on Sunday, and the Iranian government is currently seeking ways to regulate this activity within its existing legal structure.

Abdolnaser Hemmati, president of the Central Bank of Iran, said in a statement:

“The government economic committee approved a mechanism for digital currency mining, which will be discussed later at the cabinet meeting.”

Similarly, Homayun Haeri, deputy minister of energy for electricity and energy, said government ministers would vote on a measure to approve the price of the mine.

Earlier, the Iranian government had been hesitant to approve mining, just last month, the authorities seized and closed two mines.

Haeri also said in the past that the government should not fund cryptocurrency mining.

However, Iran’s electricity prices have been very cheap for a long time. At the same time, under the sanctions, Iran’s factories have closed down and power resources have become more surplus. Unlike China, Iranian power plants do not have stable buyers like the National Grid. Many small power plants are facing a crisis of survival at all times, and they are forced to report extremely low electricity prices.

Compared with China's average electricity cost of 0.4 yuan / kWh, Iran's electricity bill is "horrible."

As a result, many Chinese mining unions ventured to Iran to carry out bitcoin gold mining.

Although cryptocurrency mining seems to have received a preliminary green light in Iran, it is unclear whether officials will agree to use cryptocurrency as a means of payment.

It is reported that the Iranian Central Bank has proposed to ban the use of cryptocurrency payments in the country at the end of January, although local industry stakeholders are opposed to the ban.