Altcoin News: Iran Proposes Annual Crypto Miners Licensing Scheme

September 20, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Iranian authorities have introduced a bill according to which the cryptocurrency mining industry will be regulated on their territory, CoinDesk writes. Sources familiar with the situation said that the document is being prepared for approval.

Licensed and registered cryptocurrency miners will need to provide certain information about themselves, including a list of commercial activities, the expected amount of investment, current employment status, availability of rental agreements, the cost of mining equipment and the duration of the mining project. The license will have to be renewed annually.

The mining industry in Iran has experienced rapid growth over the past two years. At the same time, the majority of entrepreneurs conduct their activities out of sight of regulators and purchase equipment on the black market, avoiding paying taxes. In this regard, the Central Bank of Iran decided to legalize miners. According to the proposal of the authorities, owners of low-power equipment will not have to register, which will exclude amateur miners from the scheme.

One of the industry participants said that they supports the initiative since it can lead to the formation of a more stable business in the country. For example, if too many miners are concentrated in one region, they may be asked to distribute their available capacities.

“It’s obvious that the power industry here in Iran, it’s not a private business, it’s from the government,” the second anonymous source said. “They need to figure out how to balance mining [operations] so that they wouldn’t harm the power grid. If there’s a constant, a continuous consumption of electricity you can also make new power plants or assign power plants to this.”

The source admits that underground mining with the approval of the bill will not be completely eradicated. The third interlocutor predicts that Iran will become one of the key players in the Bitcoin mining space in the coming year.

Author: Marko Vidrih