Iran to combat US economic sanctions,licenses 14 Bitcoin Mining farms

Iranian government issues 14 licenses to crypto mining farms,provides subsidized electricity rate to boost the growth of crypto mining across the country

By · Jul 15, 2020 . 5min read

Source – Freepik

Extremely low electricity rates such as $0.01-$0.05 per kilowatt-hour, has made Iran a well-known entity in mining circles.Iran licenses 14 Bitcoin mining farms,reports Tehran headquartered news agency, Mehr on Sunday. Syndicates from as far as China and Russia have flocked to Iran for this very reason. Cheap electricity is also attracting illegal activities like smuggling equipment and setting up crypto mining farms.

The Iranian government offers subsidies mainly in the summer months of June to September. During these months, electricity costs increase by nearly 400%. As a result, there is a lot of illegal mining occurring during these months. Iran’s contribution to the Bitcoin network’s global hash rate has consequently doubled to 4%.

Earlier in the year, the Iranian president Hassan Rouhani announced that his government would be coming up with a comprehensive mining strategy. The energy department, the central bank and the country’s finance minister were called upon. They formulated a mining-friendly policy.

The Iranian government has always been favourable towards Bitcoin. It sees Bitcoin as a way to free itself from the financial sanctions imposed on it by the US. It recognised mining as an official industry last year. Earlier this year, the government licensed Iminer, a Turkish based mining company. Iminer is a $7.3 million bitcoin mining enterprise

As of now, Iran provided licenses to 14 different mining farms and cut their electricity tariffs by up to 47%. The miners are required to take part in the government’s efficiency drive to be eligible for the benefits. This includes projects such as replacing the country’s age-old gas powered air conditioners with energy-efficient ones. They would also be required to disclose their identities, the size of their mining farms, and the type of mining equipment that they are using.

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