Iranian Government Plans to Authorise Cryptocurrency Mining

Abdol Nasser Hemmati, the governor of the Central Bank of Iran (CBI), announced yesterday that the government plans to authorise the mining of digital assets in the nation. However, those running computer systems to profit from their support of cryptocurrency networks will be charged for electricity at the country’s export price rather than the cheaper, subsidised rate.
Iran has reportedly become quite the hot spot for Bitcoin mining in recent months, thanks largely to its generous electricity subsidy. There are even reports of Chinese cryptocurrency miners relocating to the country to take advantage of the cheap rates.
New Executive Law to Authorise Cryptocurrency Mining in Iran
According to a report in domestic news publication PressTV, the governor of the CBI stated yesterday that the national government has already approved sections of an executive law that would allow for the mining of cryptocurrency by Iranian citizens.
Cryptocurrency miners are always on the lookout for cheap electricity to run the required sophisticated computer systems.
Abdol Nasser Hemmati added that there would be conditions to the authorisation. Firstly, he stated that the electricity rate charged to those mining cryptocurrency would be at the nation’s export rate. This ranges from about 7c to 10c per watt. Previously, many of the nation’s digital asset miners were using the heavily subsidised rate charged to regular Iranian citizens. At just 5c per watt, it’s understandable why such a surge in the activity has been reported lately.
The second condition stated by the bank governor was that mined cryptocurrency should “be fed back to the national economic cycle.” Presumably, this is a measure intended to crack down on the Chinese miners suspected of setting up in Iran to take advantage of the low-cost energy.
Interestingly, Hemmati added that any new currencies backed by other assets – currencies, gold, or anything else – would not be permitted by the CBI.
The announcement by the Iranian central banker comes as something of a surprise given recent events in the nation. The surge in the numbers of cryptocurrency miners exploiting the subsidised power there forced authorities to launch a crackdown. In the process, they reportedly seized thousands of computer systems from factories, greenhouses, mosques, and other locations.
Perhaps more baffling is the fact that cryptocurrency trading is currently illegal in Iran. NewsBTC reported on the nation’s deputy governor for new technologies confirming as such earlier this week. Those prosecuted for the activity could serve up to five years in jail. How the newly-authorised Iranian cryptocurrency miners are supposed to sell the cryptocurrency they are rewarded is anyone’s guess.
Many analysts have previously stated that Iran could benefit from adopting a cryptocurrency as a way to counteract the US economic sanctions against it. However, judging by its stance towards the technology in recent years, the nation seems more cautious to explore this, or better at hiding it, than the likes of North Korea.
 
Related Reading: Report: North Korea Is Evading US Sanctions Using Cryptocurrencies
Featured Images from Shutterstock.
The post Iranian Government Plans to Authorise Cryptocurrency Mining appeared first on NewsBTC.

Bitcoin Price Breaks Below $8,500, Are Bears In Complete Control?
Friday November 15, 2019

Following the crypto asset’s historic 40% rally at the end of October, the leading cryptocurrency by market cap is once again bearish, and Bitcoin price has now broken below $8,500. Are bears back in...

Analyst: There Are 4 Long Term Scenarios For Bitcoin, Does a Bullish Trend Await?
Monday November 18, 2019

Bitcoin trends at the moment appear to be building bearish momentum as the asset failed to reclaim $9,000 over the weekend. The down trend seems to have resumed so analysts are now turning their...

The post Analyst: There Are 4 Long Term Scenarios For Bitcoin, Does a Bullish Trend Await? appeared first on 12bitplay - Bitcoin Play.

The post Bitcoin Price Breaks Below $8,500, Are Bears In Complete Control? appeared first on 12bitplay - Bitcoin Play.

50DMA: Bitcoin Price Facing Dangerous Retest Of Moving Average
Thursday November 14, 2019

The leading crypto asset by market cap, Bitcoin, has had a confusing year thus far. The cryptocurrency started the year at extreme lows but later exploded back up 350% to $14,000, before falling nearly...

The post 50DMA: Bitcoin Price Facing Dangerous Retest Of Moving Average appeared first on 12bitplay - Bitcoin Play.

You may also like...