Crypto Mining Gets Official Backing in Iran

The Iranian authorities have come to recognize cryptocurrency mining as an industrial activity. Mining activities received the official nod during a Sunday cabinet meeting chaired by President, Hassan Rouhani. According to a report by the Mehr News Agency, industry participants will now require licensing from the Ministry of Industry, Mine and Trade to operate.

Whilst approval has been given to mining activities in the country, crypto users will be responsible for all the risks associated with using the technology. The cabinet stressed the fact that neither the government nor the banks will be held liable for losses.

Mining of cryptos in Iran has been fueled by low electricity prices. There are reports suggesting that miners from other countries such as China are setting up mining farms in the country. The government is yet to reveal the approved rate for mining farms. However, there are speculations that the rate will be increased to 7 cents per kilowatt from a current 2 cents.

The fact that crypto mining is now an industrial activity in Iran means that it is now taxable under the country’s rules. There is however an exception if individuals export cryptos and bring back the revenues to the country (which is unlikely). Whilst cryptocurrencies are still not approved for domestic transactions in Iran, the move to legalize cryptocurrency mining can be deemed as a first step to legalizing cryptos in the country.