Iran has declared it will now allow industrial-scale power plants from the Islamic republic to mine bitcoin – on the condition they don’t utilize subsidized fuel.
In an announcement to the Islamic Republic News Agency (IRNA) on July 27, Mostafa Rajabi Mashhadi, a deputy managing director at Tavanir, Iran’s Power Generation, Transmission and Distribution Control Business, stated electricity plants in the nation could function as bitcoin mines “if they comply with approved tariffs” and also possess the required licenses, Fintech Zoom reports.
Mashhadi stated any power plant believing such a venture couldn’t utilize subsidized fuel for crypto mining.
“Now we’re in a situation where the supply of electricity is of great importance to the public,” the power spokesman said. “We will not allow anyone to misuse tariffs provided for the agricultural and industrial sectors to produce bitcoin while it’s worth more than $9,000.”
Iran’s Ministry of Industries, Mining and Trade has issued 1,000 permits for crypto mining because the authorities authorized it as a licensed industrial action in July 2019.
In accordance with the IRNA, a spokesman for the energy sector said 14 crypto miners at Iran had asked more than 300 megawatts (MW) of electricity – equivalent to the utilization across three states in the nation.
The tariff strategy for crypto miners in Iran depends upon market factors like gas costs in the Middle East. Mining wants a whole lot of energy, but the country’s power is quite cheap in comparison with the rest of the planet. Mashhadi estimated in 2019 the creation of one bitcoin would utilize just about $1,400 in state subsidies.
Individuals who expose illegally working cryptocurrency mining firms in Iran also obtain a bounty of around 100 million rials, or $2,375.