The Iranian Economic Commission Legalizes Crypto Mining, Finalizes Electricity Tariff Rates

On Monday, July 22, the Iran Chamber of Commerce, Industries, Mines and Agriculture made an announcement stating that the Economic Commission of the Iranian government has approved the cryptocurrency mining mechanism in the country.

Abdolnaser Hemmati, the governor of Central Bank of Iran said: “a mechanism to mine digital coins was approved by the government’s economic commission and will later be put to discussion at a Cabinet meeting.”

Hemmati sees this as a counter-measure to boost the country’s economy which has been on a tailspin after the new U.S. sanctions. He added that the digital miners will contribute to Iran’s economy instead of letting the escape abroad.

The head of the Economic Commission Elyas Hazrati said that the government has given an official status to cryptocurrencies. “We do believe that cryptocurrency industry should be recognized as an official industry in Iran to let the country take advantage of its tax and customs revenues,” he said.

Besides, the Iranian Economic Commission has also finalized tariffs for crypto mining activities, reads a report from the Iranian economic daily Financial Tribune.

The deputy minister energy for electricity and energy Homayun Haeri told that the government ministries will together decide and approve an electricity rate for the crypto mining farms. Although the deputy minister didn’t elaborate exact price theme he added that the price will be based on market factors like the fuel prices in the Persian Gulf.

Iran continues to be an attractive destination for crypto miners due to availability of cheap electricity. At present, one kilowatt hour of electricity in Iran costs $0.05. Ali Bakshi, the head of  Iran Electrical Industry Syndicate had previously proposed a price of $0.07 per kilowatt electricity for the crypto miners.

Mostafa Rajabi Mashhadi, the Energy Ministry spokesman for the power department had earlier said that mining one BTC taken consumes nearly $1400 in state subsidies.

Now with Iran planning to legalize cryptocurrency mining in the country, the law will also ask Iran to abide with the electricity rate instead of demanding any heavy subsidy on it.

Jamal Arounaghi, the Deputy President of the Islamic Republic of Iran Customs Administration said that the agency has yet not issued licenses for importing the cryptocurrency mining equipment.