Iran creates new energy tariffs for crypto mining

21 Jul, 2019 | Updated: 21 Jul, 2019
by David Robb
Mining
Iran creates new energy tariffs for crypto mining

Iran has come to a final decision about its tariffs for cryptocurrency mining. Financial Tribune reports that the pricing scheme is now awaiting final approval by the Cabinet. 

Government subsidies mean that energy prices in Iran are generally very cheap, with 1 KWh costing around $0.05, and there have been reports that Chinese BTC miners were outsourcing their operations in order to take advantage of these lower energy costs. Energy Ministry spokesman Mostafa Rajabi Mashhadi previously claimed that mining 1 BTC cost around $1,400 in goverment subsidies, as reported by CoinTelegraph.

Iranian officials have been looking closer at crypto mining over the last month or so, after a power surge at the end of June led authorities to seize close to a thousand Bitcoin (BTC) mining rigs. The possibility of banning crypto mining was considered by the Central Bank of Iran, although it remains unclear whether BTC miners were to blame for the surge.

The country will now allow mining operations to continue, but authorities will be putting a premium on miners' energy prices, in order to limit the impact of the practice on the national power grid. Energy Minister Homayoon Ha’eri and his department haven't released any specific details about the pricing scheme, but he claims that it will be dependent on market factors, with fuel prices in the Persian gulf likely being a major one. The head of Iran Electrical Industry Syndicate, Ali Bakhshi, initially proposed a price increase to around $0.07 for crypto miners. 

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