Iran Introduces New Regulations For Cryptoasset Mining

Iran Introduces New Regulations For Cryptoasset Mining

Iranian government introduced new regulations to manage its approach to digital assets and related activities such as cryptocurrency mining.

Although Iran has already banned the trading of cryptocurrencies, it has welcomed cryptocurrency mining. But following abuse by mining farms of Iran’s access to subsidized electricity, however, the country had begun a crackdown on unauthorized mining activity.

CryptoCurrency Mining In Iran

After months of debate the government announced  on Sunday new rules to regulate the industry. Iranian Govt ratified its position on cryptoasset trading as illegal and set out the conditions under which crypto mining would be allowed.

Under the new rules, digital currency miners must obtain the approval of Iran’s industry ministry. Also Large mining farms must not be located withing 30 kilometers of all provincial centres with exceptions of the capital Tehran and the central city Esfahan.

Using electricity or natural gas to mine cryptocurrencies will be forbidden during peak consumption times and mining machines must agree with standards set by the country’s communications regulator.

The charges on power needed for mining operations will be equal to the average rial price at which the country exports electricity to other nations, or 70% of the average rial price at which its ships its natural gas.

The Mininstry of Energy and the Ministry of Oil are to announce the official rates soon. Also crypto miners would be taxed at the same rate as industrial manufacturers with exemptions for those that export mined cryptoassets and return the revenue back to Iran.

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