Iranian authorities gave the green light to industrial power plants to operate as cryptocurrency miners, provided that they don’t use subsidized power for it. In a statement 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 Management Company, said that power plants in Iran could operate as Bitcoin mines “if they comply with approved tariffs” and have the necessary licenses.
Power plants mining crypto would not be allowed to use subsidized fuel.
The Deputy Managing Director at Iran’s Power Generation, Transmission and Distribution Management Company, said that any power plant considering such a venture could not use subsidized fuel for crypto mining. The energy spokesperson said they are now in a position where the supply of electricity is of great importance to the public. “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,” the spokesperson added. China is responsible for most of the crypto mining that happens in the world.
Iran authorities issued more than 1000 licenses for crypto mining.
As reported earlier, Iran’s Ministry of Industries, Mining, and Trade had issued 1,000 licenses for crypto mining since the government authorized crypto mining as an approved industrial activity in July 2019. According to a spokesman for the electricity industry, 14 crypto miners in Iran had requested more than 300 megawatt (MW) of power, which is equivalent to the usage across three provinces in the country. The tax and tariff rates for crypto miners in Iran is dependent on market factors such as fuel prices in the Middle East. Currently, over 50% of bitcoin mining happens in remote areas of China, where the electricity is cheap.