Iran Begins Licensing Crypto Miners Under New Regulatory Framework – Regulation Bitcoin News

The Iranian government has reportedly started issuing licenses to crypto miners under the new “comprehensive and detailed” regulatory framework approved last week. Authorities previously issued licenses to a number of crypto mining operations, but halted the process due to power consumption and illegal mining concerns.

Iran Resumes Licensing of Crypto Miners

The Iranian government approved a set of “comprehensive and detailed” crypto regulations at a meeting last week that include provisions for crypto mining.

Reza Fatemi Amin, Iran’s Minister of Industry, Mines and Trade, said his ministry was now allowed to resume issuing licenses for crypto mining, local media reported. He was quoted as saying:

Based on government decisions, entities applying to mine crypto assets can obtain an establishment license and an operating license.

A pair of licenses are required before an entity can start mining cryptocurrencies in Iran: an establishment license and an operating license. The former establishes the entity as a legal crypto miner while the latter allows it to actually start crypto mining.

Sharing some details about the newly approved crypto regulatory framework, Mohsen Rezaei Sadrabadi, secretary of the government’s cryptocurrency task force, said mining hubs can now apply for a license and use mined cryptocurrencies to pay for imports. .

He explained that the Ministry of Industry, Mines and Trade is responsible for issuing licenses to crypto-miners, adding that the new regulatory framework contains provisions that address large-scale crypto-mining operations. There are also provisions for energy supplied to the mining industry, with renewable energy being given priority.

Furthermore, Rezaei Sadrabadi noted that the government has decided to make the central bank the main regulator of the crypto sector. However, he believes that crypto regulation should be multidimensional and one regulator should not oversee the entire industry, as the crypto ecosystem includes more than just cryptocurrencies.

In 2019, Iran’s central bank banned crypto trading inside the country, but the government legalized crypto mining as an industry. A regulatory framework was then established, requiring crypto miners to obtain a license, identify themselves, pay higher electricity tariffs, and sell their mined bitcoins directly to the government. In July, Iran changed some regulations to make it easier for crypto miners to access renewable energy.

In December last year, the Iranian government ordered licensed cryptocurrency miners to temporarily halt their operations due to extreme weather conditions that strained the country’s power grid during the cold months. The national power company then announced a four-month ban on crypto mining in May, but lifted the ban in mid-September after licensed crypto mining facilities voluntarily shut down their operations. to ease the burden of electricity.

Iran issued over 1,000 crypto mining licenses under the previous regulatory framework. Iranian authorities revealed in May that nearly 6,914 illegal crypto-mining farms had been shut down. Tavanir, the Iran Power Generation, Distribution, and Transmission Company, claimed that illegal cryptocurrency mining in Iran accounts for almost 85% of the industry’s energy consumption. He has threatened to take tough action against unlicensed crypto miners and nearly 10,000 illegal mining devices have been seized since March.

What do you think of Iran granting licenses to crypto miners under a new regulatory framework? Let us know in the comments section below.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.