August 13, 2020

Media: Iran plans to introduce compulsory licensing of mining companies

The publication of CoinDesk got a draft bill on licensing mining activities in Iran. Now the document is waiting for official approval.

The Cabinet of Ministers of Iran has issued a bill proposing the introduction of mandatory registration and licensing of mining companies. Now the document is waiting for official approval.

As reported by CoinDesk, citingAnonymous sources, companies will be required to provide various information about their activities, including the number of employees, the estimated volume of investments, leases for space and the cost of mining equipment. In this case, licenses will need to be updated annually.

Over the past two years in Iran has been observedsignificant growth in the mining industry. So, according to a study by the analytical firm Gate Trade, out of 1,650 Iranian cryptocurrency users, more than a third receive income through mining, and 70% of users are interested in launching their own mining farms.

One CoinDesk source from Tehran believesthat licensing mining companies is a blessing for the industry, as it lays a solid foundation for such companies. At the same time, the government will be able to better monitor the cryptocurrency mining business and, for example, in case of excessive concentration of companies in a certain region, it is better to distribute the business.

“Energy infrastructure belongs toto the state. They need to figure out how to balance mining so as not to overload the network. In case of steady demand, the government may even launch new power plants, ”another anonymous source said.

Iranian authorities recently recognized mining as separatetype of industrial activity. Industry growth is associated with low electricity prices - residents pay only $ 0.05 per kilowatt, and in some sectors, electricity is also subsidized by the state.

However, soon the electricity formining may rise in price - the Iranian Economic Commission has calculated the individual electricity tariffs for miners and submitted them to the Cabinet of Ministers for consideration.

</p></p>