Iran Classifies Cryptocurrency Mining as an Industrial Activity

Get Into Cryptocurrency Trading Today

In what could be a big step towards the legalization of cryptocurrency in Iran, the country’s government has classified the mining of coins as an industrial activity. This authorization of the activity means that it falls under the scope and rules of the government.

The decision was made over the weekend, according to local media reports, and in attendance at the meeting was Iran’s President Hassan Rouhani. 

Entities that are looking to mine cryptocurrency in the country will have to seek out a license at Iran’s Ministry of Industry, Mine, and Trade.

A step in the right direction

This move is a long way from total freedom and legality of cryptocurrency in the country, but experts are still interpreting the decision as a good sign. Experts believe this could be the first step towards legalization, especially considering its potential to get around strong US sanctions on the country. 

None-the-less, as it stands, the use of cryptocurrencies domestically remains outlawed. Those now taking part in the legal mining of cryptocurrencies will need to bear responsibility for this.

The benefits for those mining cryptocurrencies still outweigh the risks of illegal usage of the coins as there is a massive subsidy for the miners from the government. 

Subsidized electricity rates in the country in general - currently at half-a-cent per kilowatt - are reportedly even enticing miners from China to move to Iran. However, this could be an area for money-making for the government.

A working sector

Part of the reason for legalizing the mining of cryptocurrency is that Iran wants to take advantage of the tax and customs revenues that can come for it. Even with the general subsidized electricity rates, Iran intends to charge a premium to miners. 

The idea of legalizing, and thus regulating, mining in Iran is win-win for both miners and the country. The purpose of legalizing it means that the industry is given legitimacy, and the government has a chance to earn money off of the industry.

Buy & Sell Cryptocurrency Instantly