Iran’s Ministry of Industry, Mine and Trade, has given out licenses to more than 1,000 crypto miners in the country.
This is according to reports by local news platform Financial Tribune on Friday. Amir Hossein Saeedi Naeini was named as the source of this news. He disclosed that if properly harnessed, the crypto mining industry can improve Iran’s economy by about $8.5 billion.
Iran in favor of crypto mining
The Islamic Republic of Iran first legalized cryptocurrency mining in June 2019. Due to its low electricity cost, the country has held a great appeal to crypto miners.
Hossein Naeini further disclosed that the country was looking to set favorable regulatory policies, especially for miners. This is to ensure that the country profits from the huge benefits crypto mining can generate.
Although crypto mining in Iran is quite new, many people believe in its potential and are willing to invest in it. However, for mining to legally take place, all miners would have to obtain an official license.
Prior to this time, stringent regulations and high electricity tariffs have caused many mining firms to go out of business. Leaving behind only large scale miners. Hossein Naeini pointed out that the country was looking to ensure that regulatory conditions are favorable to all miners irrespective of operating size. To achieve this, however, Iran will have to amend its electricity rates and terms.
Governments all over the globe are becoming more aware of cryptocurrencies. With many of them looking to harness the perceived benefits of this technology. Concurrently many of these countries have announced plans to launch a foray into the digital asset space. Iran for one is calling on all Islamic nations to help build a digital currency that will effectively bypass US sanctions.
However, while Iran is saying yes to crypto mining, the country still does not view cryptocurrencies as a medium of exchange.