Iran State Document Reveals Details of It’s Regulations of Cryptocurrency Mining

Iran’s Ministry of Industry, Mine and Trade is close to finalizing a document that paves the way for legitimizing cryptocurrency mining for local and foreign citizens in the foreseeable future.

Iran State Document Reveals Details of It’s Regulations of Cryptocurrency Mining
Iran State Document Reveals Details of It’s Regulations of Cryptocurrency Mining

In early August 2019, Iranian President Hassan Rouhani’s cabinet issued a directive that recognized cryptocurrency mining as an industry for the first time and defined general tenets. Among other things, the directive obligated the ministry to come up with a framework based on which cryptocurrency miners could start working transparently. Previously, those miners had been operating without any state supervision.

According to a transcript of the document shared with Bitcoin Magazine, which will be put into effect as soon as industry minister Reza Rahmani signs it, legitimate cryptocurrency miners will have to obtain two permits.

First, in order to secure a license for establishing a cryptocurrency mining business, one natural or legal person — which could be local or foreign — will have to provide a business ID and estimates of investments, job creation, capacity, machinery valuations and a business plan, among other things.

Business establishment licenses last for 12 months and can be renewed after the owner provides project progress reports. 

Mining farms will have to be established on industrial land in accordance with industrial units regulations and will not be subject to proximity limitations, which means that they can be situated both inside and outside of metropolises.

The document says.

“The total power consumption of cryptomining equipment of each industrial unit is equal to at least 30 kilowatts and licenses cannot be issued for equipment with lower consumptions,”

The energy to be consumed by cryptocurrency mining farms is to be provided either from the national power grid or privately through non-state power plants, renewable sources or gas-powered producers.

The second permit from the industry ministry is the one that allows for a cryptocurrency mining farm to operate. To obtain this permit, business owners will have to declare what kind of devices and how many of them they have, what company developed them and how much power they consume, among other criteria. These permits will last for 12 months and can be renewed upon personal inspection by an industry ministry representative