News

The Bitcoin Mining Industry in Iran has been Shutdown Due to Rise in 300% Electricity Tariffs

Photo by Dmitry Demidko on Unsplash

The Electricity Tariffs On Bitcoin Mining In Iran Has Been Increased by About 300% from 482 tomans (Iranian Currency) to 1930 tomans per kilowatt.

With the end of may, The electricity tariffs for digital currency mining increased to 300% from 482 tomans ($0.35) to 1930 tomans ($0.46) per kilowatt, and due to the increase in electricity tariffs almost all the mining industries in Iran has been stopped.

In 2018 large scale collection of Bitcoin Mining Equipments has been seized by the Penitentiary and Law Enforcement Agency by the order passed by the First Iranian Vice President according to Iranian news agencies.

The early years of Digital Currency Mining boom in Iran, from 2016 to 2017, most of the Digital Currency Miners entered Iran without a legal licence due to the Impossibility of Legally Importing Mining Equipments in Iran, and most of the existing mining equipments are considered to be smuggled.

Omid Alavi – Digital Currency Mining Expert in Iran

As per Omid Alavi, a professional digital currency miner and member of the Iranian China Blockchain Association, That Importing a Miner legally “Under the existing conditions is not economical to miners and no one is motivated to do so”. The Tariffs and costs for imposing a miner are total about 22% in Iran.

However, some legal entities applied for a license from the Ministry of Industry. According to the cabinet, only legal entities can apply for a permit.

Meanwhile, in this situation where only some new series of devices that have maintained their profitability after the Bitcoin Halving, and this time according to the instruction of the Ministry of Energy, the electricity tariffs per kilowatt-hour has been increased to 1930 Tomans ($0.46) +20% of duties and values added, This situation letting the Ministers in Negative Income, thus leads the Bitcoin Mining Industry in Iran Shutdown.

Source: ArzDigital

Related posts

Leave a Comment