The challenge of providing miners with energy at a reasonable rate; according to the resolution of the National Trade Single Window, cryptocurrency mining devices must obtain a product identifier and tracking code from this system.
Providing energy for miners at a reasonable rate is the main challenge for industry associations.
Recently, a resolution has been issued regarding the registration of miners in the NTSW, according to which cryptocurrency mining devices have until the end of June to obtain a product identifier and tracking code from this system.
Based on a new plan approved on June 10, with the presence of regulatory experts, the IT office experts from the Ministry of Industry, Mining and Trade, the Blockchain Association, and the National Computer Guild Organization, cryptocurrency mining devices must be registered in the NTSW by the end of June to obtain a product ID and tracking code. The registration deadline is June 30, and legal action will be taken against offenders after this date.
This plan applies to individuals involved in buying, selling, using, storing, importing, or producing cryptocurrency mining devices. It should be noted that the condition of the devices, whether functional or defective, does not affect this requirement; all devices must be registered in the NTSW.
This decision has been made based on Note 4 of Article 18 of the Law on Combatting Smuggling of Goods and Currency., which emphasizes the illegality of buying, selling, transporting, and storing smuggled goods. According to this decision, devices acquired before the law was enacted must also be registered in the NTSW and receive tracking codes.
Regarding the registration of mining devices, an interview was conducted with Afshin Ashouri, head of the Cryptocurrency Commission at the National Computer Guild, which will be discussed below.
Tracking Code Requirement for Miners Made Mandatory
Afshin Ashouri explained the recent regulation regarding tracking codes for miners: “Note 4 of Article 18 for mining devices has been in effect since March 1, 2022, and all individuals with mining devices must register them in the NTSW. According to this regulation, all devices, whether licensed or not, must be registered, and identification codes will be assigned to the miners.”
He further elaborated on the reason for this registration: “According to this law, all machinery and devices imported from abroad must be registered in the NTSW and receive tracking codes. Mining devices, being part of the cryptocurrency industry, must follow this procedure.”
Ashouri continued: “Although this law has been in effect since the end of 2021, miners have been given until the end of June to register their devices. If someone wants to transfer the device to another person or if this process continues, new individuals must also complete the registration in the NTSW. Furthermore, even if someone is storing mining devices in a warehouse and not using them, they must still register and obtain a tracking code for their device.”
Aside from this discussion, a question that arises for many is: Given that countries worldwide are rapidly moving towards digital economies and Iran, under US sanctions, could use cryptocurrencies for foreign trade and to circumvent these unjust sanctions, why do officials move so slowly in this area, and why is there a clear lack of cohesion in this sector?
Energy Supply Challenges for Miners
Afshin Ashouri highlighted that the primary issue for cryptocurrency miners in Iran is the energy supply. He explained: “Currently, industries are required to be self-sufficient and produce their electricity. Despite opposition from many industry associations, we were the only industry that suggested that a specific amount of energy should be allocated to this sector, and the unshakable currency earned from mining, which is readily available and non-sanctionable, should be used for foreign trade.”
Ashouri criticized the state of electricity provision for miners in the country, saying: “We have supplied gas and electricity to Iraq and still have not received payment. The amounts vary, and we are unsure which figures are accurate. We have repeatedly asked for reasonable energy fees for the cryptocurrency industry, but unfortunately, the energy provided is at the export price to Turkey, a country that often does not pay Iran. This industry is the locomotive of the digital economy. Artificial intelligence complements blockchain and crypto, but this sector has not been allowed to grow properly within the country.”
He continued: “Currently, even polluting industries receive subsidized electricity and gas and do not supply their energy. Such industries cause environmental pollution, health problems, etc., but they receive subsidized electricity with ease. The question arises: why is the same or equivalent subsidized gas not provided to the cryptocurrency industry? Why has this industry been differentiated from others?”
Ashouri emphasized the need for the Industrial Commission of the Parliament to address this issue and not just focus on steel and polluting industries. He stated:
“The cryptocurrency industry is a foundational and pivotal component of the digital economy. We cannot expect to achieve digital economic development merely by using terms like ‘digital economy governance.’”
Cryptocurrency Mining Industry Neglected in Parliament
Ashouri criticized the Parliament’s lack of attention to the cryptocurrency mining industry: “The current Parliament has acted weakly and passively regarding the cryptocurrency mining sector. The Mining and Trade Commission should give special attention to this industry, which unfortunately has not been the case so far.”
He noted: “The cryptocurrency industry in Iran is still emerging, and many people lack knowledge about it. However, you cannot stop technology, especially in a portable industry like mining. If appropriate actions had been taken, with reasonable energy fees, we would have seen significant progress and avoided its underground growth.”
Ashouri added that the industry is on the verge of bankruptcy and becoming more underground due to unusual fees. He said: “Our main point is to view this industry like other industries and allocate appropriate electricity and gas to it. This would create employment and utilize the earned currency for foreign trade.”
Iran’s Hash Rate Falls Below 2%
Ashouri discussed their plans to use cryptocurrencies for export and import:
“We proposed to bring one billion dollars into the country over two years, creating non-sanctionable currency to provide to the Central Bank for export and import use. We are losing time. This industry needs to grow to gain a significant hash rate and make progress. Previously, Iran’s hash rate was 5-7%, but now it is below 2%.”
He further explained the half-hearted efforts in the cryptocurrency sector:
“Unfortunately, this technology and industry have not been managed properly. Russia has significantly developed this industry and is advancing rapidly. We had plans to establish specialized cryptocurrency centers in 14 locations across Iran. Currently, despite many issues, we are constructing a non-governmental specialized center with self-sufficient electricity and have incurred significant costs, yet we remain on hold.”
Ashouri emphasized the need for experts to manage this sector:
“Management should be entrusted to specialists. Currently, qualified and committed youth are not allowed to take responsibility, causing many to leave the country and resulting in a loss of valuable resources. Few people in this country are genuinely concerned about its progress and remain undeterred. We hope that a suitable path is taken for the cryptocurrency industry in the country so that everyone can benefit from this sector.”
