Iran has been suffering at the hands of tough US sanctions, with many turning to cryptocurrencies as a way to escape the impending financial crisis. However, crypto exchanges around the world have been forced by the US to ban Iranian traders, confiscating their funds in the process.
As a way to continue interacting with the crypto world, Iranians have turned their attention to crypto mining, with the country planning a massive 560-meter water part come Bitcoin mining farm. To help crypto miners, the Iranian National Tax Administration (INTA) has announced that crypto miners that bring their foreign income – profits from selling mined Bitcoins – back to Iran, they will receive a nice tax break.
A Feature That Already Works
This new incentive from INTA is hardly a new concept, it has been around for years but over in the oil industry. Oil exporters that bring their profits back to Iran see a similar discount on their taxes come tax time, and INTA is hoping that by offering the same incentive to crypto miners that it can carry on pocketing USD.
A Love-Hate Relationship with Mining
Iran has a strange love-hate relationship with crypto mining, but this latest bit of legislation from INTA tips it back into love’s court. A recent crackdown on illegal mining activities saw more than 1,000 ASIC mining rigs confiscated. While Iran has incredibly cheap electricity – around 5 cents per kilowatt hour – it’s still a hefty sum of money for miners to pay upfront, forcing many miners to operate from inside mosques. Miners favor mosques as they’re given free electricity under other government regulations, but miners looking to take part in the tax rebate will not be able to use this free electricity – largely because it’s illegal.
This new tax incentive in Iran is huge news for the Iranian crypto mining community, and we could see a great deal of hashrate added from the country in the coming weeks as more miners look to take advantage of it. Iran is firmly looking to defy the US and break through its sanctions with the use of Bitcoin.