Iran is establishing a crypto mining mechanism, but prohibits operations during peak electricity consumption hours

This article is from Iran Front Page, original author: IFP editorial team

Daily Planet Translator | Azuma

Commenting on the country’s digital currency production mechanism, Iran’s economy minister and a senior lawmaker announced that mining of Bitcoin and other cryptocurrencies will be provided with three-phased timers that will be turned off during peak electricity consumption periods.

Elias Hazrati, chairman of the Iranian parliament’s economic committee, said: “After the public, economic actors and parliament members demanded greater transparency in the mining of digital currencies such as Bitcoin, the parliament’s economic committee decided to hold a meeting to make the necessary decisions on the issue.”

• Elias Hazrati said that Iran currently has no laws regarding digital currencies.

“The Parliamentary Economic Committee believes that there is a possibility of delay in adopting the necessary decisions on digital currency. Therefore, the committee has invited the Minister of Finance and Economic Affairs, the Minister of Industry, Mining and Trade, the Minister of Energy, officials from the Central Bank, the Passive Defense Organization, and the Ministry of Communications and Informatization to attend a meeting to discuss in detail the advantages and disadvantages of using digital currency and its legal procedures.”

• Elias Hazrati stressed that the Iranian government has recognized that digital currency is an industry.

“The government has developed a plan that will circumvent the disadvantages of digital currencies and amplify their advantages. The plan also ensures that people can easily obtain the necessary licenses from the Ministry of Industry, Mining and Trade to enter the field.”

• Elias Hazrati also stated that Iran has decided to provide electricity for digital currency mining at a reasonable price.

“The government has also decided to develop a peak-hour electricity consumption mechanism to prevent power problems. Therefore, the relevant agencies will provide a three-stage timer for digital currency mining activities, which will be turned off during peak electricity consumption.”

Meanwhile, Iran’s Minister of Finance and Economy Farhad Dejpasand said the government recognizes digital currencies. He also stressed the prohibition of mining digital currencies during peak electricity consumption hours.

Farhad Dejpasand added that the price of electricity used to produce digital currency will be determined based on the average price of exported electricity. However, according to a statement by Iran’s Deputy Energy Minister Homayoon Ha’eri on Sunday, the price of electricity exports is not fixed and is based on various variables, such as fuel prices in the Persian Gulf region.

Earlier on July 22, the Iranian Chamber of Industry, Mining and Agriculture posted on its official website that the country's Economic Committee has approved the establishment of a cryptocurrency mining mechanism in the country.

Earlier (last Sunday), Iran's Mehr News Agency reported that Jamal Arounaghi, deputy director of the Iranian Customs Administration (IRICA), said that there is still no license issued for the import of cryptocurrency mining machines. IRICA currently only determines and defines the tariff quota for cryptocurrency mining equipment. At the request of some organizations, IRICA has notified the tax rate for mining equipment used for cryptocurrency. Jamal also said that if the government agrees to import equipment for the production of cryptocurrency, IRICA will implement legal directives. Jamal emphasized that the Ministry of Industry, Mining and Trade and the Central Bank should issue approval letters for the import of cryptocurrency equipment into the country.