Can regulations be regulated?
Among the numerous countries enforcing crypto regulations is Iran. Iran is the second-largest country in the middle-east, with a population that is not exactly relevant here.
Unfortunately, Iran had been dealt a hard blow by the Trump Administration in 2018, and since then has been seeking ways to get back on its economic feet.
For years, Bitcoin had been banned in Iran, but with the situation presiding as an after effect of the hard blow, they had to ease up and make amends.
In 2019, Iran legalized the use of bitcoin and other cryptocurrencies for foreign transactions and permitted mining with certain regulations and necessary registrations.
The Iranian government had initially subsidized its domestic electricity, making it an attractive place for 'mining'.
As a result of the government's success through mining registrations, in 2020 they decided to reduce the mining registration cost by 47%.
An after-effect of these occurrences was the seizing of 45,000 illegal mining rigs found in several parts of the country.
In recent times, it appears the Iranian government has intentions to only permit the use of bitcoin mined within Iran for imports.
This implies that only crypto generated from state-licensed mining rigs will be used for institutional foreign transactions.
This new regulation comes after power outages have been blamed on illegal mining activities.
Huhh?
To understand the words above, you're going to need to understand what exactly 'mining' is and how it works.
Mining is more or less the process through which cryptocurrencies like Bitcoin are generated. It also involves the process of maintaining and developing the blockchain ledger.
Like mining for gold, this process is expensive. It also requires sophisticated computers used to solve complex mathematical problems.
This entire process of mining requires an obscene amount of energy, hence why the affordability of Iranian domestic electricity made them a hub for illegal and legal mining rigs.
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