The government of Iran is working on approving a new set of regulations around the practice of cryptocurrency mining. According to a new report by CoinDesk, sources in Tehran have confirmed that the draft is moving toward approval.
The latest draft of the proposal, which comes from the Cabinet of Iran, would require cryptocurrency miners to register with the government and obtain a license that would need to be renewed every year. Obtaining the license would require miners to submit information on their business activities, the value of their investments and equipment, employment status, rental agreements for mining space, and the duration of the project.
The proposal is slated to help the Iranian government to curb the use of cryptocurrency to fund illicit activities, including the buying and selling of illegal drugs, human trafficking, and the funding of terrorism. The proposal also addresses the fact that as Iran continues to struggle with international sanctions and inflation, a growing number of Iranians are turning to cryptocurrency as a way to survive.
Cryptocurrency legislation in Iran has been developing over the last several months
The proposal also serves as the latest piece of evidence that the Iranian government is willing to support cryptocurrency miners within the country. Because of the low cost of electricity within the country, cryptocurrency mining has become a popular activity.
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In June, the Iranian Ministry of Energy announced that it would be cutting off power to cryptocurrency mining operations that were using the country’s subsidized energy grid until a new pricing system was established.
When the prices went into effect around a month later, cryptocurrency miners were charged $0.07 per kilowatt-hour; ‘normal citizens’ were charged $0.05 per kilowatt-hour.
As a result of this, the Iranian government made the decision to authorize cryptocurrency mining as an industrial activity in July. However, several days later, the Iranian government instituted a new bill declaring that cryptocurrencies are not legal tender and that domestic transactions carried out with cryptocurrencies will not be officially recognized.
Last week, the country’s National Tax Administration agreed to exempt crypto mining earnings that were collected offshore if miners repatriate them.