Low Cost Mining May leads Problem For Iranian Government

Iranian government raises alarm that crypto mining friendly behaviour of Iran’s environment may lead to enhanced illegal mining operations. 

After China’s crackdown on Bitcoin/crypto mining, most of the mining firms are moving  toward crypto mining friendly countries. One of the crypto mining friendly countries is Iran. In the present situation Iran government raises some issues that may arise soon in Iran.

Related: Iran Allows Bitcoin Mining In The Country

The Authority of Iran said that  they are providing low cost mining energy & also allowing mining firms Legally to operate their operations in Iran. This crypto mining friendly behavior may lead into a big problem because there are huge chances that lots of mining hardware machines are entering Iran illegally ( ” smuggling of crypto mining hardwares”).

Tavanir CEO Mohammad Hussein Motevallizade told to the Eghtesadnews

“Lower electricity costs make Iran attractive to Chinese miners. They are likely to start smuggling mining equipment into the country”

So Motevallizade has suspicion on Chinese miners that they can illegally enter Iran. 

According to a report in the Financial Tribune, Iranian government decided to give licenses to only 50 mining firms. But later in in the end of June, Iranian authorities changed their decision and reduced the no. by 20, So now only 30 mining firms can take license to run their operations and also the charge of electricity will be four times the initial charge. So miners will pay $0.39 per kilowatt-hour. These things clearly indicate how much Iranian government is feeling pressure because of the influx of Chinese miners.

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