The cheap electricity prices in Iran attracts many crypto mining firms to the country despite the negative stance of the government towards such enterprises.
However, that incentive could be done away with if Homayoun Haeri, Iran’s deputy energy minister gets his way in implementing a policy that will represent a big blow to the country’s thriving crypto ecosystem.
According to a local news agency, Financial Tribune, Haeri suggested that the Iranian government should allow cryptocurrency miner to pay real prices for the electricity that their operations consume.
In other words, the minister wants the near $1 billion electricity provided by the government to apply only for domestic power uses and not crypto mining operations.
As per the report, the prohibitions on trading and mining cryptocurrencies in Iran has not lowered the number of crypto mining firms springing up in the country as a result of the “relatively low electricity costs and tanking of the Rial due to the US sanctions.”
The deputy energy minister likely believes that the profits generated by cryptocurrency miners should conveniently cover their electricity costs even if the country removes the existing subsidies for Iranians.
Meanwhile, the latest statements by Haeri comes at a time when Iran is rumored to want a firm foothold on the cryptocurrency industry to allow its economy to stay afloat amid sanctions by the United States.
Aside from partnering with their Russia counterparts to build a strong crypto economy, we reported in January, that the country was set to release its cryptocurrency and at the same time reverse the ban on the industry by introducing fairer regulations to govern operators and consumers.