Frequent news on the regulatory level, Iran is in urgent need of compliance with Bitcoin mining business

In the past month, news about Iran’s cryptocurrency mining has frequently been heard, and Iran’s regulatory level has been voiced one after another. According to foreign media yesterday, the Iranian Economic Commission (Iran Economic Commission) on Sunday (July 21) has approved the establishment of cryptocurrency mining mechanism in the country, and today there is news, mainly for mining power Aspects of regulatory details.

Earlier, Iranian Deputy Minister of Electricity and Energy Homayun Haeri issued a statement saying that the Iranian government economic committee has agreed to set the price of electricity for cryptocurrency mining based on the average price of similar export electricity. This decision is currently awaiting approval by the Cabinet. Today's news, the Iranian Minister of Economy and a senior legislator commented on Iran's national digital currency mining mechanism, announced that bitcoin and other cryptocurrency mining activities will be segmented using a three-stage timer, these timers It will be closed during peak hours.

Since Iran did not have laws related to digital currency, the Iranian government is currently seeking ways to regulate cryptocurrency mining within the existing legal framework. Although the Iranian Economic Commission approved the establishment of a cryptocurrency mining mechanism in the country last Sunday, further regulatory rules are still awaiting discussion and approval at the cabinet meeting.

Iran’s current regulatory direction for cryptocurrency mining is mainly for compliance issues between mining power and import of cryptocurrency equipment.

First of all, in terms of electricity use, due to the low price of electricity in Iran, it has always attracted the attention of cryptocurrency miners. According to the "Global Market Information Herald" previously reported, Iran has proven natural gas reserves of 34 trillion cubic meters, ranking first in the world, accounting for 18.2% of the world's proven reserves. Iran's domestic application of natural gas power generation accounts for Iranian national The total installed capacity is over 80%.

Iran’s Minister of Information and Communication Technology, Mohammad Javad Azari Jahromi, said in an interview that Iran has natural gas reserves and is freely used by Iranian power plants, so Iran’s electricity prices are cheap, making Iran a country of interest to global cryptocurrency miners, Iran’s electricity. Very attractive to cryptocurrency miners.

But the most controversial part of it is precisely the price of electricity. Iran's electricity consumption in May increased by 7% year-on-year. According to media reports, the Iranian side believes that cryptocurrency mining is the main reason for the sharp increase in electricity.

According to Sina Technology last month, Iranian state television reported on June 28 that due to the surge in electricity consumption, the Iranian authorities have seized about 1,000 bitcoin mining machines at two abandoned factories, after the Iranian authorities issued a warning. Bitcoin mining activities have led to a surge in electricity usage, which is subsidized by the government. The move by regulators has affected the migration of cryptocurrent miners from other countries and regions to Iran to some extent.

Due to the surge in electricity consumption, the Iranian government has to face up to the increasingly extensive cryptocurrency mining activities. The contradiction exists in that while Iran’s power resources are consumed in large quantities and miners receive large amounts of excess profits, they are enjoying low-cost electricity prices from state-funded national grids. And the rise of the cryptocurrency mining industry in Iran has not directly contributed to Iran’s national economy.

According to foreign media reports, the Iranian government pays nearly $1 billion a year in subsidies to fill the gap between actual energy costs and consumer spending. Experts say that consumers actually pay only a fraction of the cost and ignore the prudent use of energy, and the government is constantly calling for a reduction in consumption. Iran’s Minister of Information and Communication Technology, Mohammad Javad Azari Jahromi, said that it is unacceptable for some people to use the current situation to exploit cryptocurrencies by domestic forces. In this case, mining cryptocurrencies means exporting currency in cyberspace.

Therefore, the relevant mining and mining rules have been formulated, including re-charging the electricity for mining activities and closing the mining during the peak period. The main purpose is to control the power consumption to ensure sufficient power during the peak period and to ensure that the electricity is digging after the power is used. The consumption of electricity by mine activities generates revenue for Iran’s national economy.

In addition, on the issue of mining machinery imports, as in the electricity consumption rules, there is currently no regulatory-related license in Iran. According to foreign media reports, the General Administration of Customs of Iran (IRICA) currently only defines and defines the tariff quota for cryptocurrency mining equipment. The cryptocurrency mining equipment is currently listed as the tariff number with “computer and central processor”. No. 84719090.

Earlier, the Iranian government and the Bank of China had ordered the Customs Administration to import mining machines before the new regulations were introduced. Jamal Arounaghi, deputy director of the Iranian General Administration of Customs, said on Sunday that there is still no license for importing cryptocurrency mining machines. The Ministry of Industry, Mine and Trade and the Iranian central bank should be The import cryptocurrency device issues an approval letter.

Although the Iranian law did not prohibit the encryption mining business, the uncertainty of the regulatory level has certain risks for the cryptocurrency miners going to Iran for mining and the Iranian state itself. With the implementation of relevant regulatory policies in Iran, the cryptocurrency mining industry is expected to find new areas for survival and development.