Iran plans to introduce compulsory licensing of mining companies

The publication of CoinDesk got a draft bill on licensing mining activities in Iran. Now the document is waiting for official approval.

The Cabinet of Ministers of Iran has issued a bill proposing the introduction of mandatory registration and licensing of mining companies. Now the document is waiting for official approval.

According to CoinDesk, citing anonymous sources, companies will be required to provide various information about their activities, including the number of employees, estimated investment, lease agreements and the cost of mining equipment. In this case, licenses will need to be updated annually.

Over the past two years, Iran has seen significant growth in the mining industry. So, according to a study by the analytical firm Gate Trade, out of 1,650 Iranian cryptocurrency users, more than a third receive income through mining, and 70% of users are interested in launching their own mining farms.

One of the sources of CoinDesk from Tehran believes that licensing mining companies is good for the industry, as it lays a solid foundation for such companies. At the same time, the government will be able to better monitor the cryptocurrency mining business and, for example, in case of excessive concentration of companies in a certain region, it is better to distribute the business.

“The energy infrastructure is state owned. They need to figure out how to balance mining so as not to overload the network. In case of steady demand, the government may even launch new power plants, ”another anonymous source said.

Recently, Iranian authorities recognized mining as a separate type of industrial activity. Industry growth is associated with low electricity prices – residents pay only $ 0.05 per kilowatt, and in some sectors, electricity is also subsidized by the state.

However, in the near future, electricity for mining may rise in price – the Iranian Economic Commission calculated individual tariffs for electricity for miners and passed them to the Cabinet of Ministers for consideration.