While Iran has legalized cryptocurrency, the regulations are taxing for the investors. The official recognition for cryptocurrency in Iran comes after several months of debate and speculation.
Several crypto-mining farms which compete with the global decentralized network in order to verify cryptocurrency transactions are functioning in Iran. The nationwide grid provides electricity for the mining process. In some cases, the power is made available from new power plants outside the network.
The electricity price for the miners come for the rate at which Iran exports electricity to other countries or at 70% of the average Rial price. The exact amount will be announced by The Ministry of Energy and Ministry of Oil. Iran operates three exchange rates. An online currency system through which Iranians are obliged to sell their foreign currency earnings in rials is used to arrive at the mining electricity costs. This is the average electricity price in terms of natural gas exports.
The cabinet directive asserted, “Using electricity or natural gas to mine cryptocurrencies is forbidden in peak consumption times.” Installation of smart power meters and announcements of peak hours to combat violations is called for.
Hamed Salehi stated, “As a whole, this is the start of something positive since it legalizes important aspects of cryptocurrencies.” He further added, “This means that people active in this field will no longer run the risk of being slapped with accusations of criminal wrongdoing.”
The usage of the cryptocurrency has been limited to the confines of foreign currency laws. Mining farms are envisioned by the government as productive industrial units and therefore until they have exported the cryptocurrencies, they will have to pay taxes.
Salehi stated, “Final costs remain to be seen, but if they turn out to be too high, miners will immediately shift their whole operations abroad to more friendly neighboring destinations, including Georgia, Armenia or even Iraq.”
It has been felt that when professional miners quit and individual home operators who are ordinary citizens come to the scene seeking easy profits, then the trend can worsen.
A new category has been designed for cryptocurrency mining devices by the Customs Administration. This will eventually pave the way for them to be able to legalize their cryptocurrency imports soon. With additional costs, this fast-growing industrial sector might become profitless, driving prospective miners away from the industry.