Amidst, crypto crackdown here and there, Iran has authorized some particular firm in the country to mine cryptocurrencies.
Following a period of anti-crypto warfare, Iran suddenly appears to be easing cryptocurrency restrictions.
According to the Financial Tribune of Iran, the government has awarded new mining licenses to 30 companies through the Ministry of Industries, Mining, and Trade.
Iran prohibited all crypto mining activity in May, citing President Hassan Rouhani’s explanation that it was putting a strain on the country’s already restricted hydroelectric power supply.
As a result, residents in large cities were subjected to unannounced blackouts.
The ministry’s licenses were distributed throughout a number of regions, with Tehran, the capital, obtaining the lone license.
Six licenses were granted in the Semnan province, while four were granted in the Alborz province. In addition, four enterprises will be located in each of the provinces of East Azarbaijan, Mazandaran, and Zanjan.
Despite the fact that crypto mining was legalized in Iran roughly two years ago, the Iranian government has reserved the right to license certain miners.
As a result, there haven’t been many licensed businesses in the country.With a large number of delinquent miners operating in Iran and violating laws, Tehran believes that mining has become a very expensive business.
Iran was experiencing power shortages of up to 5,000 megawatts before the blanket ban on crypto, with 2,000 megawatts lost to illegal miners.
In reality, the Government sanctioned immediate action earlier this month, with the government taking up to 3,000 mining equipment, and it confiscated an estimated 7,000 bitcoin mining rigs just last week, all from illicit mining operations in the country.
It’s worth mentioning that in the past, clashes between the government and crypto miners were less common.
Iran had embraced the cryptocurrency industry, offering miners up to half-price electricity rates. The crypto business, on the other hand, has become an appealing proposition as a result of these favorable terms of operation.
Miners from a number of other nations, particularly China, were drawn to Iran, causing the industry to become overburdened.
Iran accounts for little under 5% of all crypto-mining activity, according to Elliptic, and the country earns millions of dollars from them.The money raised will go a long way toward reducing the impact of US sanctions on the country.