Months after the Iranian government has established a crypto licensing regime, reports reveal that more than 1,000 miners have acquired the necessary permits to operate in the country.
On January 24, Amir Hossein Saeedi Nai, a member of a Blockchain Commission known as the Information and Communications Technology (ICT) Guild Organization, disclosed the number of crypto mining permits that were issued by the country’s Ministry of Industries, Mining and Trade. The announcement was then reiterated by Iran’s Banking and Economic System Reference Media (IBENA) to the general public on January 24.
Iranian government had repeatedly announced that before launching crypto mining businesses in the country, miners must first comply with the licensing procedures. So far, over a thousand mining farms have obtained the permits and have already rolled out operations. The full capacity of Iran’s domestic mining industry can bring an estimated $8.5 billion into the country’s economy.
A chance to bounce back
Notably, Iran’s economy was hurt by the United States’ banking sanctions. Worse, other western countries followed suit. The inception of digital currencies can help Iran boost its foreign exchange volumes. Furthermore, aside from dodging economic sanctions, he noted that it could also help in facilitating trade while opening the channels for the flow of foreign currencies.
Nai also revealed to the press that the Blockchain commission is working hard to improve the condition of the crypto mining industry in Iran. Notably, the organization hopes to see a resurgence in crypto mining activities by lowering electricity rates and by encouraging cooperation between gas-burning power plants and domestic miners.
At $0.007/kilowatt-hour, the price of electricity in Iran is considered as one of the lowest in the world. However, the surge of crypto mining activities was seen by the country’s regulators as the primary reason for frequent blackouts and energy shortages. These instances have prompted relevant authorities to get a good grip on Iran’s power supply. As a result, the government exercised a more rigorous approach to crypto mining.
From the world-renowned $0.007, the electricity tariffs for the crypto sector surged to $0.07 per hour, same as the price of electricity exports.
It’s worth noting that before the implementation of Iran’s crypto licensing regime, some mining operators have expressed their fears in doing business in the country. The penalties include jail time and confiscation of mining equipment.