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Writer's pictureIshita Bora

Iran’s Trade Ministry Issues Operating Licenses For 30 Crypto Mining Centers In The Country




Report said that Iran’s Ministry of Industries, Mining, and Trade issued operating licenses for 30 crypto mining centers in the country.


It has been reported that Iran’s Semnan Province received the most licenses, with six crypto mining farms now authorized to operate in the region. Alborz Province secured four such licenses, followed by Mazandaran, East Azarbaijan, and Zanjan Provinces. Tehran Province, which houses the country’s capital, reportedly received only one license to operate a crypto mining center.


However, the ministry also issued 2,579 establishment permits for new industrial crypto mining units across the country, with 305 of them secured by Zanjan Province. Fars Province and West Azerbaijan follow Zanjan, with 262 and 247 permits.


The report said that an operating license is mandatory for Iranian companies to start a legal crypto mining business. Eligible applicants should acquire establishment permits and set up their industrial unit within 12 months, and then apply for the operating license.


Cryptocurrency mining is legal in Iran, as miners are allowed to operate under rules approved by the government in July 2019. Despite the legal status of crypto mining in Iran, the government is actively fighting illegal crypto miners due to increasing pressure on the national power grid.


According to the report, authorized crypto mining companies are required to pay much higher energy costs for mining cryptocurrencies like Bitcoin (BTC) than are residential or other commercial customers. The news comes after Iranian President Hassan Rouhani announced in late May a blanket ban on Bitcoin mining in the country until September as a measure to alleviate pressure on the national power grid.

Likewise, last Tuesday (June 22), Iranian provincial police confiscated more than 7,000 mining rigs at a farm operating in the capital of Tehran. The crypto mining farm was referred to as the largest, most significant drain on the country’s energy usage.


According to the Iran Power Generation, Distribution and Transmission Company, more than 188,000 units of crypto mining equipment have been seized over the past 12 months.


Thus, these devices reportedly resulted in 180 trillion rials ($4.2 billion) in losses to the national grid and power distribution equipment.


Source: Cointelegraph | Image: Adobe


 

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