Cuan! Iran Gets 1 Billion U.S. Dollars From Bitcoin Mining

JAKARTA - Iran managed to earn as much as 1 billion U.S. dollars in revenue from bitcoin mining. The report was reported by a blockchain survey agency called Elliptic.

Reporting by Bitcoin News, the survey agency said regulated mining activity could increase revenues by up to $1 billion. This is claimed to help Iran avoid economic sanctions imposed by the United States.

The agency's report says that iran currently contributes 4.5 percent of all global Bitcoin mining activity.

"The U.S. imposed an almost total economic embargo on Iran, including bans on all Iranian imports and sanctions against Iranian financial institutions," Elliptic wrote as quoted by Bitcoin News.

"Oil exports have fallen 70 percent over the past decade, leaving the country in a deep recession with soaring unemployment and a period of civil unrest."

According to the report, energy consumption for bitcoin mining in Iran itself is not expensive. The cause was a decline in the country's abundant oil prices.

This means energy consumption for mining activities is becoming cheap for Iran. Therefore, the government allows Chinese investors to play an important role in the development of the crypto economy in Iran.

"A number of Chinese (investor-owned) businesses have been granted permission to mine and already operate in the country. These companies have already described good relations with the 'army in Iran', and one very large facility in the Rafsanjan Special Economic Zone is rumoured to be under construction which is the result of cooperation with 'military organizations'," elliptic's report reads.

Bitcoin mining activities in the country have helped boost Iran's economy. The abundance of oil energy is used to produce Bitcoin to be sold to the global market.

At the end of April, Iran was reported to have issued a policy that allows banks to provide cryptocurrency trading. Iranian intelligence agencies are also reportedly hunting illegal Bitcoin miners in the country.