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Governments across the world are beginning to recognize cryptocurrencies and the crypto industry as part of the developing economy. There have been developments regarding legislation and regulations about cryptocurrency in various countries.
Through its Economic Commission, the Iranian government has issued approval of a mechanism to mine cryptocurrency in the country. The announcement was made on the 22nd of July by the Iran Chamber of Commerce, Industries, Mines and Agriculture.
Crypto Mining Approval
The mechanism to mine digital coins was approved by the government. The Governor of the Central Bank of Iran (CBI) said that government approval was done through its economic commission and that cabinet will later engage in further discussions about the matter in its next meeting. After the latest meeting by the commission, it has been ascertained that cryptocurrency is now officially recognized by the government. Elias Hazrati, head of the commission, said that the government seeks to take advantage of the tax and customs revenue they could generate from the crypto industry.
Earlier in July, it had been said that Bitcoin and crypto mining would be permitted in the country. During that time, the CBI Governor, Abdul Hemmati, said that the Iranian government had partially approved executive law that would grant permission to crypto miners in Iran so they could engage with digital assets. This is expected to boost Bitcoin trading in Iran as more people will begin to engage in crypto trading.
Hemmati holds the opinion that cryptocurrency miners in the country should contribute to Iran’s economy. The profits generated through online crypto trading and related activities should be used to the benefit of Iran as a whole instead of letting mined Bitcoin go to other countries. As more people buy Bitcoin (BTC), the Iranian government and economy can benefit through tax revenue.
Growth of crypto industry in Iran
The crypto industry in Iran has found itself in a position that will fuel its growth. Prior to the announcement of the approval of the mechanism to mine digital assets, there had been the finalizing of a tariff scheme for crypto miners. The tariff scheme was also developed by the same commission. The exact price scheme was not specified and Energy Minister, Homayoom Ha’eri, said that the prices will take direction from market factors such as fuel prices in the Persian Gulf.
Matters regarding the importing of cryptocurrency mining equipment are still yet to be decided on. The Deputy President of the Islamic Republic of Iran Customs Administration (IRICA), Jamal Arounaghi, stated that the national agency has not issued licenses permitting the importation of crypto mining equipment. IRICA will have to develop directives that will guide the importing of this machinery if the government gives the go-ahead.