Iran has announced that it will now allow industrial power plants to work as Bitcoin miners – provided it does not use subsidized fuel.
Mustafa Rajabi Mashhadi, executive vice president of Tavanir, an Iranian power generation, transmission and distribution company, said in a statement to the Islamic Republic of Iran News Agency on July 27 that the country's power plants could operate like bitcoin mines if approved. Definitions. … “and obtain the required licenses.
Mashhadi said that no power station considering such an investment can use subsidized fuel to mining digital currencies.
“We are now in a situation where the provision of electricity is of great importance to the population,” said the energy representative. “We will not allow anyone to misuse agricultural and industrial tariffs to produce Bitcoin as long as it costs more than $ 9,000.”
All about strength
Cointelegraph reported in January that the Iranian Ministry of Industry, Mines and Trade had issued 1,000 crypto mining licenses since the government approved them as a licensed industrial activity in July 2019.
According to the Iranian News Agency, a spokesman for the Electricity Company said that 14 miners in Iran had requested more than 300 megawatts of electricity – the equivalent of using it in three provinces in the country.
Iran's cryptocurrency tariff system is based on market factors such as fuel prices in the Middle East. The mining industry requires a lot of electricity, but the country's electricity is very cheap compared to the rest of the world. In 2019, Al-Mashhadi said only $ 1,400 of government subsidies would be spent on making one bitcoin.
People who disclose illegal activities of cryptocurrency mining companies in Iran also receive rewards of up to 100 million riyals, or $ 2375.