Iran is shaping up to be one of the most stable countries in the world for cryptocurrency mining. Sensing a seismic shift in the country’s economic landscape, the government is doing everything it can to ensure that this new, fledgling industry is able to thrive, while also being properly regulated.
Yesterday, industry news medium CoinDesk reported that the Iranian government is mulling over the imposition of compulsory registration requirements for all cryptocurrency miners in the country. According to the report, the Iranian cabinet submitted a draft proposal, which would require any prospective crypto miners to provide information such as rent details, their employment history, and any other businesses that they may be involved in.
CoinDesk posited that the requirements were designed to help improve the government’s ability to curb any illicit activities related to cryptocurrency mining, while also ensuring that the industry is able to thrive and remain profitable.
Sanctions have forced Iran to embrace crypto
The move is quite understandable. The Iranian government has come to realize an impending reliance on the crypto sector, especially in the face of economic sanctions placed on it by the United States, as well as the international community.
Thus, the crypto sector in Iran has seen some significant growth over the past few months. While cryptocurrencies themselves aren’t recognized as a means of payment yet, there is a rather favorable environment in Iran for anyone who would like to mine. Crypto mining was recognized by the government as a standalone industry in July, essentially meaning that people and businesses could now mine their crypto assets without fear of a crackdown or regulatory violations.
Keeping the industry regulated
The need for registration and proper accountability could also not come at a better time. Thanks to the recognition of the activity as a part of the country’s ecosystem, interest in the Iranian mining sector has continued to surge, both from within and without.
Just last week, Gate Trade, an analytics firm, organized a research effort on Iranian Bitcoiners via various Telegram groups. While the report did reveal quite a lot about the income distributions amongst crypto miners in the country, one significant discovery was that a staggering 70 percent of the total 1,650 respondents were willing to learn more about their local mining industry.
There is an argument to be made that these people will get the education that they seek, and when they do, some of them might choose to venture into the activity as well. In addition to the thirst for mining knowledge, local news medium PressTV reported back in July that Chinese Bitcoin miners have also shown significant interest in moving their business operations to Iran.
Citing Mohammad Sharqi, managing director of the Iran Blockchain Association, the news medium confirmed that there have been discussions between the Association and Chinese miners about what plans they might have for moving into the country. It also added that cheap electricity (as low as $0.006 per kilowatt-hour) have attracted the miners, as they believe that they could generate more profits mining in Tehran than in other regions..
Given all of these, it is understandable (commendable, even) that the Cabinet of Iran is stepping up to ensure that they can handle the influx of prospective miners. The Economic Commission of the Islamic Republic of Iran already submitted energy recommendation costs for the industry, and if the government can now know the people who mine, they could potentially keep operations stable across the board.