Words had been circulating in the crypto industry, claiming that Tehran is getting close to acquiring official approval from the Iranian government.
Notably, the Cabinet of Iran had passed draft legislation detailing the new proposals for crypto mining regulations in the country. Registered crypto miners in Iran would be required to renew their license every year. In doing so, they need to submit a variety of information such as their investment value, the list of business activities and employment status.
In just over two years, the crypto mining industry had grown significantly. The dramatic growth can be attributed to its largely subsidized electricity. Gate Trade, a market analytics research center, had conducted a survey. The study involved 1,600 local crypto users. Thirty-five percent of the respondents said that mining is their primary source of income. Meanwhile, 70% revealed that they are interested in exploring and learning more about crypto mining activities.
The Central Bank of Iran changed its strategies. Instead of working against the industry, the government established a licensing procedure as governed by the law in July 2019. However, this proposal is still awaiting a formal review from the Minister of Industry, Mine, and Trade. The draft legislation would only be applicable to crypto miners who own equipment that needs 30 kilowatts. It means that homemade equipment, as well as those geared only for small operations, are excluded.
The proposal has the potential to strengthen the foundation of the thriving mining industry in Iran. If the authorities find that there are too many crypto miners located in a single district, then they could encourage some to move across other mining regions to balance operations. The government controls the power supply, and it’s fully disclosed to the public. However, the government must find ways on how to balance mining operations so as not to jeopardize the stability of the power grid.