Iranian Authorities Allow Power Plans To Mine Cryptocurrencies
The Iranian authorities have finally given a green light to power plants in the country to mine cryptocurrencies such as Bitcoin but they will not be able to take advantage of government subsidies as per the reports that we have in our latest cryptocurrency news.
Iran announced that it will now allow the industrial-scale power plants in the country in order to operate as Bitcoin miners provided that they will not use the subsidized fuel. In a statement from the Iranian authorities, specifically the Islamic Republic News Agency, Mostafa Rajabi Mashhadi, the deputy managing director at Iran’s Power Generation, Transmission and Distribution Management Company said that the power plants in the country can mine cryptocurrencies such as Bitcoin “if they comply with approved tariffs” and have the needed licenses. Mashhadi said that any power plant will not be able to use subsidized fuel for the mining process:
“Now we’re in a situation where the supply of electricity is of great importance to the public. We will not allow anyone to misuse tariffs provided for the agricultural and industrial sectors to produce Bitcoin while it’s worth more than $9,000.”
As previously reported in the best cryptocurrency news sites, Iran’s Ministry of Industries, Mining, and Trade issued 1000 licenses for crypto mining as the government authorized it as an approved industrial activity in 2019. According to the IRNA, a spokesperson for the electricity industry said that about 14 miners in the country had requested more than 300 megawatt of power which is equal to the usage across three provinces in the country. The tariff scheme for crypto miners in the country depends on different market factors such as fuel prices in the Middle East. Mining requires a huge amount of power but the electricity in the country is very cheap compared to the rest of the world. Mashhadi estimated that the production of one Bitcoin will use only about $1400 in government subsidies.
People that expose illegally operating cryptocurrency mining companies in Iran, will get a bounty of 100 million rials or $2,375. Also, Iran launched a national Bitcoin mining plan as the industry gained more attention and more governments try to form different mining strategies. The strategy will involve the regulation of private mining operations and the management of crypto mining revenue which will help governments to tax Bitcoin from the miners.