Loading...

Crypto miners must register with state, Iran govt says

In this post:

Iran’s government has announced that all crypto miners in the country have one month to register their mining rigs with the government or could face serious legal action.

This was disclosed by Iranian Vice President, Eshaq Jahangiri who stated that crypto miners in the country must disclose their identities, the size of their mining farms, and also their mining equipment type with the Iranian Ministry of Industry, Mines and Trade.

Jahangiri emphasized that all crypto miners will have only a month to register their equipment with the Ministry, and afterward the government will publish a list of licensed mining centers and mining requirements.

Notably, this new act would give Iran a stricter control over crypto miners in the country, as well as regulate their activities. However, it remains to be seen how much of the underground community will heed the directive.

Although, the vice president’s announcement did not specify the punishment for failing to register. It worth noting that, illegal crypto miners could face jail time and heavy fines according to past occurrence.

Crypto miners trooping to Iran

Miners from as far and wide including Russia and China have been trooping to Iran, for crypto mining. Most of them drawn by the state’s cheap electricity.

However, the Iranian government’s attraction to bitcoin is both political and economic, primarily motivated by the desire of financial freedom from US governmental overreach.

Currently, Iran crypto miners contributed about 4 percent of bitcoin’s hashrate in April. Jahangiri’s announcement is the latest in its cat-and-mouse game with the country’s illegal crypto miners, who smuggle in rigs and are sometimes caught.

Notably, Iran is the world’s third-largest oil producer, is currently hoping to leverage bitcoin and other digital currency to circumvent US economic sanctions.

Additionally, Iran’s President Hassan Rouhani told the press that the country needs to spur a cryptocurrency mining strategy, in order for the country to prosper economically amid US sanctions.

Iran grants licenses to thousands of mining firms

It’s worth noting that until last year when mining received official recognition as an industrial activity, the government appeared suspicious of cryptocurrencies, worried about their ability to bypass central authority in financial transactions.

However, Iran has issued more than 1,000 crypto mining licenses ever since. Notable on the list is Turkish-based company Iminer. The company currently operates up to 6,000 rigs, with a computing power of 96,000 terahash per second (TH/s) in total.

The license granted by Iran’s Ministry of Industry, Mine and Trade have also allowed Iminer to offer trading and custody services in the Middle East country.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Metalcore
Cryptopolitan
Subscribe to CryptoPolitan