Licensed Iran Bitcoin Mining Firms Can Resume Operations in September
With effect from the final week of September, Iran will once again let Bitcoin and cryptocurrency miners to do business in the nation. Tavanir, Iran’s electricity generating agency, made the announcement earlier this month, as per the Financial Tribune.
Back in May, Iran’s government announced that it will be banning Bitcoin (BTC) and all cryptocurrency mining activities. The ruling was allegedly taken at the time to stop miners from overloading the grid during the peak of summer season.
Nevertheless, Bitcoin miners have been accused for Iran’s ongoing blackouts and electricity shortages. As a result of the severity of the situation, Iran is said to have halted power shipments to neighboring Afghanistan. Chinese businessmen reopened the country’s biggest Bitcoin mining facility in April after it had been shut down for four months owing to concerns about excessive energy usage.
Nevertheless, illicit crypto mining activities are said to be putting a considerable pressure on the power grid. As a result, when the ban ends in September, only approved miners will be allowed to restart mining. The country’s commerce ministry granted 30 crypto mining licenses in June, as Iranian officials continue to promote regulated crypto mining companies.
In June, authorities in Tehran allegedly seized more than 7,000 rigs from illicit mining activities throughout the city. Iran legalized Bitcoin mining this year, with more than 1,000 permits granted in January of that year. The government, on the other hand, seems eager to localize its cryptocurrency mining industry, with parliament even contemplating a law to prohibit the utilization of “foreign-mined” cryptos for payment in the nation.
With a $1 billion income projection in May, the government anticipates Bitcoin and cryptocurrency mining to turn into a major economic activity in the nation. Nevertheless, the summer restriction may render the goal unachievable, at least until 2021.
Iran’s cryptocurrency adoption policy may also be expanding significantly, with the country’s tax office lately requesting a legislative infrastructure for cryptocurrency trading operations.