On Sunday, the Iranian government’s economic commission legalized cryptocurrency mining activities for its natives, marking a perfect response to the growing number of crypto mining farms setting up shop in the country.
The latest development was revealed in a July 22 update released by Iran’s Chamber of Commerce, Industries, Mines and Agriculture, with another section noting that the country is developing internal laws to guide the activities of firms in the industry.
Central Bank of Iran (CBI) Governor Abdolnaser Hemmati also confirmed the development saying in a statement,
“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.”
Similarly, Iran’s Deputy Energy Minister, Homayun Haeri whom as we reported favors removal of electricity subsidy for crypto miners mentioned that the country’s authorities are working on new electricity rates for mining farms. Government officials would soon discuss and vote on the prices according to the top official.
Will Iran Legalize Cryptocurrencies too?
Without a doubt, Iran’s decision to legalize crypto mining calls to mind another long-standing issue, which is whether the country would also approve the use of cryptocurrencies by natives.
Several times in the past, officials in the country have reportedly called for an outright ban on crypto usage, favoring the release of a central bank-backed digital currency (CBDC) instead.
However, the fact that a decision hasn’t been made in that regard raises hopes that the latest approval of crypto mining will directly lead Iran to revise its otherwise negative stance on cryptocurrencies.
The country’s cheap electricity price is apparently what attracted miners, and at this point, it is difficult to picture a situation where crypto mining is legal while spending its proceeds (cryptocurrencies) is illegal.
The country thus would likely want to reach a compromise, which we hope would favor their emerging crypto ecosystem.