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Iran legalize cryptocurrency mining as potential path out of US sanctions trap2 min read

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According to news agency PressTV, the Iranian government is planning on authorizing Cryptocurrency mining in the country. The report made on the 10th of July states that the governor of the country’s Central Bank (CBI) has confirmed this.

According to the Iranian government’s Chamber of Commerce, Industries, Mines and Agriculture, an economic commission approved crypto mining on Sunday, with the government now looking for ways to regulate this activity within its existing legal structure.

“A mechanism to mine digital coins was approved by the government’s economic commission and will later be put to discussion at a cabinet meeting,” Central Bank of Iran governor Abdolnaser Hemmati said in a statement

Similarly, deputy minister energy for electricity and energy Homayun Haeri said government ministers will vote on a measure to approve an electricity rate for mining farms.

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Mining of the international digital currencies should be done based on the price of electricity for export. What’s more important is that these mined currencies should be fed back to the national economic cycle,” Hemmati said. However, according to PressTV, Iran would not allow any cryptos in Iran whose values are based on the price of the national currency rial or gold or other assets.

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The announcement comes amid an unprecedented surge in bitcoin mining in Iran. Authorities have launched a crackdown on illegal bitcoin farms in places like factories and greenhouses where subsidized electricity is used to mine the digital gold.

Unverified reports have even suggested that miners from China have launched several bitcoin farms across the country.

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However, some believe Iran could use its abundant sources of off-peak electricity to feed such farms as it could generate wealth for the country at a time of increased economic pressure by the United States.

Two Iranian nationals remain the only individuals to be placed onto the U.S. State Department Office of Foreign Asset Control (OFAC)’s sanctions list for bitcoin activities specifically.

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