After putting a ban on crypto mining, now the Iranian Government is authorizing a handful of mining facilities to resume their crypto mining operations. For this purpose so far only 30 mining facilities have been officially authorized to resume workings.
It was a month ago when the legalized activity of crypto mining in Iran was officially banned throughout the country. This led to huge hues and cries and protests by the mining industry as well as the blockchain association. However, the Iranian Government did not pay any heed to their protests and in fact, withheld the ban for six months’ time. Some of the aggrieved tried to take up the matter to the Court but then dropped the idea on the pretext that no relief would be provided.
Now the Iranian Government has come up with the idea to make up for the grievances of the miners. The Government has decided to issue authorizations afresh to crypto miners. Since the initiation of this decision, the Iranian Government has issued only 30 licenses. According to these licenses, only the license holder will be authorized to resume crypto mining operations. Apparently, the 30 miners given permission to resume workings are those located outside Tehan. Only one Tehran-based crypto farm was allowed to resume operations.
It was the Government’s own decision to legalize the crypto mining process in the country and the decision was taken in 2019. At that time, it was required by the Government that each miner will obtain a license from the authority. Thereafter, 14 Bitcoin mining facilities obtained such licenses and started minting Bitcoins. Several compensatory benefits were also granted to the miners in an effort to encourage the mining industry. This then paved the way for further mining facilities to emerge on the Iranian landscape. Crypto mining then became one of the most flourishing businesses in the country.
However, the situation got worse when the summer came this year. Iranians complained of power shortages and upon investigation, the Government noticed that there were several illegal miners in the industry. What these illegal miners were doing was that they were stealing consumer electricity meant for the general public. Firstly the regime initiated an operation against the miners and tried to capture the wrongdoers. In this attempt, the Government did in fact catch the culprits but still, there was no end to the power crisis.
In the end, the Government decided to impose a ban on the overall crypto mining process. It was alleged by the Government that crypto mining authorizations have been misused and abused by the miners. Therefore, the Government has to impose a ban as a last resort to end corruption and misuse. Now it seems that Iran is trying to re-establish the industry while ensuring that this time no such incidents occur again.