Home Business Iran ramps up cryptocurrency mining operations

Iran ramps up cryptocurrency mining operations

Iran ramps up cryptocurrency mining operations 1

Tehran officials have recently issued more than a thousand licences as Iranian financial leaders look to tackle an ever-diminishing economy by grabbing digital assets like bitcoin, Ethereum, XRP and Bitcoin Cash.

It is understood the Iranian government has given a direct order to invest heavily in crypto as it looks to skirt around Washington’s financial penalties.

Curiously, cryptocurrency trading in Iran is illegal. However, the government is keen to employ the services of companies and individuals capable of mining and storing vast amounts of digital funds.

According to Amir-Hossein Saeedi Naeeni – a member of the Information and Communications Technology (ICT) Guild Organisation’s blockchain commission – the strict laws over trading had forced many miners to leave Iran.

“The laws announced by government institutions for crypto mining are very strict in comparison to other industries in the country, causing many miners to stop operating or migrate to the regional countries for investment,” he told PressTV.

“The digital mining industry, beside bringing currency into the country, can facilitate trade where traders can use cryptocurrencies to import goods and bypass payment problems resulting from the banking sanctions.

Recently, it was reported that dozens of Chinese crypto miners based in Iran had fled the country following the escalation of tensions between Iran and the US. A swathe of Chinese mining farms relocated to Iran early last year to take advantage of cheap electricity prices.

Energy costs soared in the days following a drone strike which killed military leader Qassem Suleimani, and have not receded since. The price spike means many of the Chinese firms have sold their huge mining rigs to locals.

Iranian leaders have now seized upon the opportunity to put the mining rigs to work for the country’s own economic gain in addition to issuing hundreds of new mining licences.

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