A press conference of cryptocurrency mining industry activists was held this morning on October 18, 1402, focusing on energy tariffs from the Ministry of Energy and the Ministry of Oil.
As well as the failure of government decisions by the Central Bank to create infrastructure for meeting the currency commitments of producers. In this session, industry activists also discussed the challenges and problems in this sector.
According to IDEA, in the press conference of cryptocurrency industry activists, the following statement was released:
Four years have passed since the legalization of the mining industry in the country, with approximately 665 units established or under construction, and 200 units are operational. These units have provided about 500 megawatts of electricity for their operations, using their own gas power plant networks and renewable energy sources.
The twelfth and thirteenth governments have collectively approved five resolutions for this industry, but the result has been nothing but the halt in the growth of this sector and its gradual demise. An estimated investment of around 65 trillion rials in this sector is at risk of destruction. Given the technology-driven nature of the cryptocurrency mining sector, neglecting this sector can bring losses and regrets for the country. We have repeatedly emphasized that this sector, through the fair purchase of energy, can not only help the electricity industry but also address a significant portion of the country’s currency needs.
Demands of Cryptocurrency Industry Activists
We demand a clear and explicit solution for industry participants to navigate the current conditions and save the mining industry in the short term. The specified tasks for ministries and organizations in previous resolutions, which have not been communicated and implemented for years, include:
Establishing infrastructure for the supply of mined cryptocurrencies and formulating guidelines for the elimination of currency commitment (Article 2 of the amendment to Article 7 of the 1401.08.22 resolution, obligatory for the Ministry of Industry, Mine, and Trade, and the Central Bank). Due to the lack of mechanisms for the use of mined cryptocurrencies, Article 11 of the mentioned resolution regarding the use of tax incentives for industry players has not been realized. This has placed them at risk of heavy and uncertain tax payments for the use of the final product for imports or conversion to the rial.
Building off-grid thermal power plants (Clause 5 of the 1401.08.22 resolution, obligatory for the Ministry of Oil). Unfortunately, the high gas fuel rates considered for this industry’s branches and the non-execution of this clause from the resolution have led to the cessation of electricity production by these power plants and the lack of development in the power generation sector of this industry in conditions of national electricity shortages.
Regarding the determination of the average export rate for energy in the resolutions of the Council of Ministers, due to the lack of predicting a cap similar to the 5,000 Tomans for petrochemical feedstock to prevent the complete shutdown of this industry, the existing rate needs to be revised, and the energy rate should be calculated similarly to high-consumption industries.
Determining and communicating the incentive regulations for large-scale mining centers with the aim of reducing unauthorized mining in the country (Article 3 of the 1401.08.22 resolution, obligatory for the Ministry of Industry, Mine, and Trade, and the Central Bank), which has not been communicated even after a year.
Geographic zoning and determining the location of mining centers (Clause 5 of Article 2 of the 1401.08.22 resolution, obligatory for the Ministry of Industry, Mine, and Trade, and the Central Bank), which has not been communicated even after a year.
In conclusion, we warn that they have sealed the fate of this industry in the country. Keep in mind that the legal and transparent silence and closure of this sector will not lead to the cessation of mining in the country but will pave the way for the underground development of this sector. The next surge in cryptocurrency prices, which we are very close to, will once again put pressure on the country’s power grid.
We suggest to the well-wishers of the country that, in order to prevent the destruction of this industry, its undergroundization, and further losses to the country, industry players and investors in this field should strengthen their ties with the private sector as soon as possible and take steps to amend rates and regulations. We must act before it is too late, and opportunities turn into threats.
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