Crypto Miners Get Leverage From Iran Regulation: Access To Renewable Power

Each country focuses on crypto regulations, some have strengthened the rules but revising and making minor changes is constant. Similarly, the authorities of Iran have amended regulations for the crypto miners which now gives easy-access to renewable sources. This allows licensed miners to purchase electricity generated from renewable energy at lower rates across the country.

The firms which are authorized to mint cryptocurrencies in the Islamic Republic can only get easy access to renewable power, as per Iran’s Ministry of Energy. Moreover, the recent change in regulations sets miners free from using on-site power-generation capacities. Also allows miners to purchase electricity from renewable sources both domestically and through the national grid.

Transmission Fee is Cut For Legal Miners

According to the reports from Financial Tribune, normal transmission fees for using the country’s electrical network will not be imposed on Iranian firms engaged in legitimate, clean energy mining. So far miners have only been able to sign contracts with renewable energy facilities that are situated in the same province, says Mohammad Khodadadi, a representative of the Iran Power Generation, Transmission and Distribution Company.

Initially, the Iranian authorities gave an announcement that licensed miners would get access to green energy from December. After witnessing much interest in the crypto mining industry following this announcement, the authorities made changes in regulators. Interestingly, the country has a shortage of electricity during both hot summers and cold winters which resulted in blaming mining companies in 2021. 

Furthermore, it ended up suspending mining activities in Iran until the end of summer as the country expected an electricity shortage. This created contradictions in the crypto community during that period. Additionally, the government promised to take action against the unregistered miners by imposing fines of 400%. But most Iranians have generated more gains from mining with the usage of household electricity. Now, as per the statement from Iran authorities, licensed crypto farms are set to have easy-access to renewable sources.