Iran Issues License for Nation's Biggest Bitcoin Mining Operation

A Turkish firm has been granted a license to operate a data center with up to 6,000 bitcoin mining machines.

May 5, 2020 at 8:00 a.m. UTC
Updated Sep 14, 2021 at 8:36 a.m. UTC

iMiner, a Turkey-based company, has been granted a license to mine cryptocurrencies in Iran.

Local news source Tabnak news reported on April 28 that iMiner has the green light from the nation's Ministry of Industry, Mine and Trade to operate up to 6,000 mining rigs in the city of Semnan.

The mining company has so far spent 311 billion rials ($7.3 million) on setting up the biggest mining operation in the country to date.

The ministry has also allowed the firm to begin offering cryptocurrency trading and custody from within the country, as per the report.

According to iMiner's website, the company is the "first and largest bitcoin mining and extraction system in Iran" currently with 2,000 mining machines already hosted on its local site, with additional operations in Russia, Canada, Turkey and the U.S.

It comes at a time when interest for bitcoin mining is building and low subsidized Iranian power rates attract investment from countries like China and France as well as an increasing price in bitcoin's market value.

Up until mid-2019, the state sought to crack down on mining operations out of fear of cryptocurrency's potential ability to undermine the national fiat currency, even threatening jail time for infractions.

However, Iran's cabinet had a change of heart last July and introduced legislation making crypto mining an official industrial activity. Since then, the mining ministry has been actively regulating the space, reportedly issuing around 1,000 licenses to local operations in January.

The expansion of crypto mining operations can also be viewed as an attempt to circumvent U.S. sanctions that have been hurting the country's economy since long before U.S. President Donald Trump came to power.

Iran has been tackling with the issue of hyper-inflation as the country's parliament and lawmakers voted to amend the Monetary and Banking Act of Iran on Monday, which would see the nation's currency renamed as the toman, a unit worth about 10,000 rials.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
US Agencies Warn of Attempts by North Koreans to Get IT Jobs While Concealing Nationality

In many cases, these workers say they are U.S.-based and not North Korean teleworkers, and they often take on virtual currency projects.

In many cases, these workers say they are U.S.-based and not North Korean teleworkers, and they often take on virtual currency projects.

2
Oasis Pro Raises $27M for Crypto Securities Trading Platform

CEO Pat LaVecchia, a former MakerDAO compliance adviser, said Oasis Pro is in the “early stages” of integrating with DeFi platforms.

CEO Pat LaVecchia, a former MakerDAO compliance adviser, said Oasis Pro is in the “early stages” of integrating with DeFi platforms.

3
UST Won't Be the End of Algorithmic Stablecoins

The trail for a monetary "Holy Grail" continues, despite Terra’s collapse. So what do we do about it?

The trail for a monetary "Holy Grail" continues, despite Terra’s collapse. So what do we do about it?

4
Crypto News Roundup for May 16, 2022

With crypto markets continuing to slump and a look what a recent bill on crypto mining might mean for New York’s economy, CoinDesk’s Markets Daily is back with the latest news roundup.

With crypto markets continuing to slump and a look what a recent bill on crypto mining might mean for New York’s economy, CoinDesk’s Markets Daily is back with the latest news roundup.