Iran Licenses 14 Bitcoin Mining Farms, Reduces Electricity Rates By Up To 47% For Miners

Iran has reportedly issued permits for 14 bitcoin mining farms and will reduce electricity tariffs by up to 47% to support licensed cryptocurrency mining centers. Crypto miners will soon have to register with the government.

Iran licenses more crypto mining companies

The Islamic Republic of Iran has reportedly issued permits for 14 cryptocurrency mining farms, each with a capacity of 300 megawatts, Tehran-based news agency Mehr reported Sunday.

Cryptocurrency mining has been a licensed activity in Iran since July last year, and the country’s Ministry of Industry, Mines and Trade has issued over 1,000 licenses to cryptocurrency miners. However, not all licensed mining farms are currently operational. In May, Iran licensed Iminer, a $ 7.3 million bitcoin mining venture.

However, Iran has been trying to fight a growing number of miners smuggling their equipment into the country. Mostafa Rajabi Mashhadi, deputy head of the Iranian Energy Generation, Distribution and Transmission Society (Tavanir), said the Iranian government has identified 1,000 illegal cryptocurrency mining farms scattered across the country.

Miners flooded into Iran largely due to its subsidized electricity tariffs. The data show that mines in Iran pay $ 0.01 to $ 0.05 for one kilowatt hour (kWh) of electricity. However, the rates increase four times during the peak summer season, from June to September. The Financial Tribune reported on Sunday:

In an effort to support licensed cryptocurrency mining, Iran Power Generation, Distribution and Transmission Company (Tavanir) said it will cut up to 47% of the electricity tariff for miners during peak consumption periods.

Mostafa Rajabi told state TV that the goal of the tariff cut is to support legal mining companies during the four summer months. “To be eligible for the incentives, miners can take part or invest in Tavanir’s recent efficiency plans such as the ongoing project to replace one million old (gas-powered) air conditioners with energy efficient air conditioners,” the publication said .

Meanwhile, cryptocurrency miners will soon have to register with the government. Iranian Vice President Eshaq Jahangiri Kouhshahi announced last week:

The miners will have to reveal their identities, the size of their mines and their type of mining equipment with the Ministry of Industry, Mines and Trade.

What do you think about cryptocurrency mining in Iran? Let us know in the comments section below.

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