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Cryptocurrency Mining Legalized in Iran by the Economic Commission

cryptocurrency mining

cryptocurrency mining

After several weeks of speculation, the Economic Commission of Iran has finally approved cryptocurrency mining as an industry in the country.

On July 22 the Chamber of Commerce, Industries, Mines and Agriculture made an announcement approving crypto mining. The Commission indicated that the Iranian government was seeking ways of regulating the mechanism of crypto mining within the country’s legal structure.

Parts of Executive Law Approved to Allow Mining

In a statement, Abdolnaser Hemmati, the Central Bank Governor of Iran, stated that cryptocurrency mining has been approved by the economic commission of Iran, and the cabinet will later discuss the mechanism within the legal framework of the country. At the beginning of this month, authorities in Iran alluded to plans of legalizing Bitcoin mining and the CBI governor indicated that the government had already approved parts of an executive law authorizing cryptocurrency mining in Iran.

Hemmati advanced an argument at the time that crypto mining in the country should play a role in the country’s economic growth instead of letting Bitcoin mining escape abroad. The head of the Commission Elyas Hazrati indicated that cryptocurrency mining was officially being recognized as an official industry that the country looks to leverage in terms of custom and tax revenues.

>> Monero (XMR) Still Vulnerable Despite Receiving Support from Nick Szabo

Does the Approval Change Iran’s Stance on Cryptocurrency?

Iranian authorities have been ambivalent regarding the approval of crypto mining in the country following the seizing and shutting down of two mining firms last month. Iran has been a prime destination for crypto miners because of the availability of affordable energy rates, but the Electricity and Energy minister, Homayun Haeri, has in the past been quoted objecting to the government subsidizing cryptocurrency mining efforts.

It is still unclear whether the authorities have changed their position regarding the use of digital coins for domestic payment following the approval of cryptocurrency mining. At the beginning of the year, the CBI barred the use of cryptocurrencies for domestic payments, but industry players have protested the ban.

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Samsung Patents Its Blockchain SSD



In May, South Korean tech giant Samsung (OTC:SSNLF) filed for a patent titled “Programmable Blockchain Solid State Drive and Switch.” Although details about the recently designed system are scanty, a lot of people in the sector are already pointing out the significance of this technology. It appears like most corporations are also following the trend, with several having filed patent applications.

Samsung Patents New Programmable Tech

Patent wars are not a new phenomenon in the tech sector as there have been several legal battles over the same. In the tech sector, they go back to the time of Alexander Bell who engaged in over 600 suits. Major innovations in the past have some history of a patent war but with the digital era, the phenomenon has accelerated.

The programmable technology comprises of storage controllers and a non-volatile memory configured to regulate the system. The system has a field-programmable gate array and network interface designed to enable implementation of a blockchain algorithm. During execution, the processor will send and receive blockchain blocks through the network interface.

New Tech to Offer Efficient Crypto Mining

The new technology will be used in crypto mining in a better way compared to other ASIC miners created by cryptocurrency mining manufacturers. The tech will be efficient relative to using GPUs that have to combine different drivers, software, and configurations to do proper mining. Also, GPUs have a challenge when it comes to converting the mined coin because only a few miners can manage to do so.

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ASIC miners are specifically meant for mining and are configured to compute a particular algorithm. Because of focusing on specifics, it gives it an advantage of being efficient over GPUs. However, since they are specifically for mining, with a new solution they would become obsolete. Also, most coins are incompatible with ASICs.

Crypto analyst Sam Town indicated that patents could be a weapon that could prevent other companies from building a product similar to this. Samsung’s entry into the crypto mining sector is not a surprise as the company has been developing chips for ASIC miners.

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What Does the Bitmain IPO Abolition Mean for Cryptocurrency Industry?



Bitmain Technologies has abandoned its IPO enthusiasm after the company’s Hong Kong stock market proposal listing expired earlier this week, sparking debate on the future of the entire cryptocurrency market.

The company did say that it plans to reapply at an appropriate time in the future, saying that “despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value.”

Bitmain IPO Abandonment

The bitcoin mining giant attracted $700 million from investors in Asia leading up to its much-anticipated initial public offering, which has spurred rumors that investors will be filing a class-action lawsuit against the company. Whether or not this lawsuit will come to fruition remains to be seen.

This morning Bitmain announced that its next-generation Antminer S17 series would be going on sale globally on April 9th. This more powerful bitcoin miner is expected to maximize mining profitability by significantly increasing hashrate and increasing energy efficiency by 28% compared to the previous model.

What Does Bitmain’s Hesitance Say About the Crypto Space?

As mentioned, Bitmain has shied away from its public listing because the cryptocurrency and blockchain industry is relatively young. Of course, the volatility of the cryptocurrency market isn’t a secret, with crypto prices dropping significantly.

Still, the decision not to follow through may be more related to Bitmain’s own profitability. Despite bringing in more than $700 million in profit in the first half of 2018, the company reported a net loss of $500 million in Q3 2018 and reportedly spent $500 million on failed chips in the last 18 months.

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The Hong Kong Exchange has stated in the past that it is reluctant to approve IPOs from Chinese bitcoin mining equipment manufacturers due to the volatility in the industry and uncertainties regarding how sustainable their profits are.

Add that to Bitmain’s poor sales, technical issues with failed chips, and the declining crypto price, and it seems that it may have not been the company’s choice to let its application lapse. It will be interesting to see if the company moves forward with another application in the future.

What do you think of Bitmain’s decision to let its IPO expire?

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Bitcoin Miners Diversifying from China to the US over Regulatory Concerns

Bitcoin miners

Bitcoin miners

Bitcoin miners in China are increasingly looking for diversification out of the country because of the anticipated crypto mining ban, the Chinese government’s thoughtful position regarding cryptocurrency, and the increasing pressure from the ongoing trade war with the US.

Squire Mining to Host 41,000 ASICs

Canadian-based blockchain firm Squire Mining, a leading miner in the world in terms of hashpower, has signed a letter of intent seeking to host more than 41,000 Bitcoin ASICs in the US. This move is part of an agreement with Kevin Turner-led Core Scientific, which is a blockchain and AI company.

Already, Squire has committed about $6.37 million to the deal to host prepayments while Core Scientific plans to spend at least $12 million in development of infrastructure to cater for the relocated equipment. The Canadian Bitcoin mining firm has close ties with the creators of Bitcoin SV Jimmy Nguyen and Craig Wright, who are currently Chain executives and they also double as advisors to Squire Mining.

>> India’s Proposed Crypto Bill Puts Crypto Owners in Jail for 10 Years

Bitcoin Mining: Centralization of ASICs

This is seen as an indication of a significant change in the PoW ecosystem. Squire’s move is a benefit for the decentralization of Bitcoin Cash, Bitcoin, as well as Bitcoin SV networks. Research in the past has pointed out that more than 70% of crypto mining is located in China with multiple sources indicating that most of the mining happens in the Guangdong province. This is a major concern because the concentration of hashpower in one region increases the vulnerability of manipulation, censorship, and even seizure by government authorities.

The largest bitcoin mining firms, as well as ASIC designers, are considering hedging their operations from China and moving their supply chains away to other countries to reduce the effect of regulations from authorities in China.

Core Scientific CTO stated that the firm could compete with Bitcoin mining firms in China. Although the costs are higher because ASICs are developed in China, they nonetheless enjoy regulatory protection in the US.

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Bitcoin Mining Equipment Demand is Exceeding Supply

Bitcoin Mining

Bitcoin Mining

As the world’s largest crypto by market cap hurtles past 11k, the demand for new Bitcoin mining equipment is exceeding supply. Now, manufacturers are feeling the pressure to produce enough machines to meet this demand.

Are we revisiting the same issue that occurred at the end of 2017, where demand was three times that of supply? It looks like it.

Bitcoin Mining is in Demand

Bitcoin price surged past $10,000 USD over the weekend and is already looking comfortable at $11,368 per coin.

Though not quite at its all-time high of $20,000, Bitcoin’s current price is still a 200% jump since February. While this is great for investors, miners are feeling the pressure, as according to Steven Mosher of Canaan Creative, the maker of the Avalon Miner:

“The surge in bitcoin resulted in increased demand and supplies were already short […] the current state of the industry is that inventories are down and demand is high.”

To deal with the surge, Bitcoin mining companies such as Canaan Creative are developing newer mining models that aim to mine faster using less wattage.

New Miners

Canaan’s latest is an updated version of its Avalon 851 machine, called the AvalonMiner 1041. This model is expected to compute 37 tera hashes per second (TH/s) with electricity consumption at 2,361 watts per hour.

By comparison, the older 851 model computes 14.5Th/s, consuming 1450 watts an hour.

As stated, demand for this equipment is exploding with Mosher detailing that pre-orders for such models are already backlogged to October.

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Other Bitcoin mining companies are also feeling the burn. Only last week, Bitmain rolled out updated versions of its Antminer S9 model called the AntMiner S9 SE and S9k.

There is good news too, of course, for miners. With Bitcoin price rising and business booming, the time it takes for new mining equipment to pay for itself has decreased significantly. Data from TokenInsight estimates that in Q2, the average payback period for most mining equipment was between 60–150 days. Prior to this, the payback period ranged between 120–280 days.

What are your thoughts on Bitcoin above 11k? Will it keep going? Will Bitcoin mining meet the demand?

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China’s NDRC Wants to Ban Crypto Mining



According to Reuters, China’s state planner wants to ban Bitcoin mining. The National Development and Reform Commission (NDRC) has updated a draft list of industrial activities that it is looking to encourage, restrict, or eliminate.

The list was first published in 2011.

NDRC Wants to Ban Cryptocurrency Mining

Unfortunately for crypto enthusiasts, cryptocurrency mining has made the elimination list. The NDRC concluded that it, along with 450 activities, should be phased out as they did not follow current laws and regulations.

As stated, cryptocurrency mining was joined by 450 other activities deemed unsafe, wasteful, pollutant to the environment, or unlawful.

NDRC did not give a date or plan to implement the elimination of cryptocurrency mining but this, in turn, means it believes it should be phased out immediately.

However, the public has until May 7th to comment on the draft.


Ironically, China is the world’s largest market for crypto mining hardware. Business has boomed in this sector despite crypto mining falling under a regulatory grey area.

With a majority of Chinese people in support of the cryptocurrency industry, the list might face a backlash. It is not necessarily a reflection of everyday sentiment, but rather the “attitude of the country’s industrial policy” toward the cryptocurrency industry.

>> Chinese Investors Jump on Bitcoin’s Bull Trend but at a Higher Price

Jehan Chu, a managing partner at blockchain investment firm Kenetic, said the following:

“The NDRC’s move is in line overall with China’s desire to control different layers of the rapidly growing crypto industry, and does not yet signal a major shift in policy. I believe China simply wants to ‘reboot’ the crypto industry into one that they have oversight on, the same approach they took with the Internet.”

China vs Crypto

The Chinese government has had strict cryptocurrency sanctions in place for years. Some examples include banning crypto-to-fiat trading, banning airdrops, and forbidding cryptocurrency events from taking place in financial districts. Major Chinese company Alibaba has even banned clients affiliated with crypto and/or crypto trading. With a continued clampdown in place in the country, the NDRC’s list may cause a knock on effect.

What do you think? Should the industry worry about the list?

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