Iran estimates that it can earn some $8.5 billion from the licensing of crypto mining activities, with over 1,000 licenses issued so far. The Financial Tribune reports that The Ministry of Industries, Mining and Trade has granted the licenses after last year clamping down on domestic mining which takes advantage of subsidized energy costs in certain areas of the country.
Iran Changes its Tune on Crypto
Iran has had a somewhat fractious relationship with cryptocurrency, although it seems to be finally softening on the concept if the past year is anything to go by. In May 2018 the country restricted access to all crypto exchanges, which many thought might precede an outright ban, but fresh sanctions by the US has caused it to reevaluate its stance – it even attempted to convert its overseas cash into BTC in order to bypass the sanctions, but the US confiscated it.
On a domestic note, mining operations that made use of subsidized electricity began popping up in the poorest areas, to the point where the government began arresting individuals who practiced it.
From Arrests to Tax Breaks
However, as sanctions bit harder, the authorities softened and in fact offered tax breaks for crypto miners – as long as the government got its cut. This led to the official licensing of crypto mining activities, which the government sees as potentially very profitable – Amir Hossein Saiedi, an official with Iran’s ICT Guild Organization, told Iranian news agency IBENA that “the crypto mining industry has the potential to add $8.5 billion to the economy”.
Iran in Good (or Bad) Company
Iran is not the only country to view cryptocurrency as a potential way of circumnavigating sanctions – North Korea and Venezuela are already experimenting with the practice, while the White House’s National Security Council former senior director for counterproliferation and biodefense warned recently that China could be attempting the same thing with its planned national cryptocurrency.
