Iranian government confirms cryptocurrency mining as industrial activity

Rage Review : A report released by IIDO's Mehr News Agency on July 29 showed that the Iranian government recognized cryptocurrency mining as an industrial activity. The decision was made during the Sunday cabinet meeting chaired by Iranian President Hassan Rouhani this weekend.

Translation: Penny

A report published by IIDO’s Mehr News Agency on July 29 revealed that the Iranian government has recognized cryptocurrency mining as an industrial activity. The decision was made during a Sunday cabinet meeting chaired by Iranian President Hassan Rouhani this weekend.

The first step towards legalizing cryptocurrencies?

The report states that since mining is officially authorized, entities involved in the activity will be required to seek licenses from Iran’s Ministry of Industry, Mine and Trade.

Mehr News claims that many experts see the move as the first step towards the legalization of cryptocurrencies, noting that the asset class could be used to offset the crippling effects of U.S. sanctions against the country.

Still, the government’s decision stressed that the use of cryptocurrencies in domestic transactions remains illegal and that those engaging in the industry are responsible for the risks without any guarantees from the government or the local banking sector.

Iran’s subsidized electricity rates, currently at half a cent per kilowatt, have even allegedly prompted miners in mining hubs such as China to relocate their operations to Iran, according to Mehr News Agency.

Changing stance on mining

As previously reported, Iran’s Electrical Industries Group recently unveiled its intention to increase electricity prices to 7 cents per kilowatt for miners. Officials continue to discuss how to deal with the growing popularity of mining in the country, with one government minister stating that Iran has become a “miner’s paradise.”

News of the plan to authorize cryptocurrency mining emerged earlier this month after the governor of Iran’s Central Bank, Abdolnaser Hemmati, said the Economic Committee had approved the idea in principle and would submit it to the cabinet for upcoming discussions.

According to Hemmati’s statement, the committee believes that “the cryptocurrency industry should be recognized as an official industry in Iran, allowing the country to take advantage of its tax and customs revenues.”

Authorities cracked down on unauthorized mining earlier this summer, confiscating about 1,000 mining machines from two now-defunct factories and cutting off power to miners ahead of a planned energy price hike.