One of the richest nations in the world in hydrocarbons, Iran, has initiated during the last months a process of opening towards the mining activity. According to information, the Chinese mining company Bitcoin, Lubian, would be playing an important role in this process.
Since May, the authorities of the Islamic Republic of Iran started a process of understanding with the digital mining centers. Since then, with strong state regulation, 14 mining farms were given permission to carry out their operations.
The Chinese mining company Bitcoin, Lubian, is said to run at least one of these centres. Relations between this Chinese firm and the Persian authorities appear to be in very good shape, according to the report.
Multinational Bitcoin mining companies strengthen ties
It is true that China is, beyond any doubt, the epicenter where the largest and most important Bitcoin mining companies in the world are concentrated. However, some conditions are not entirely favourable for the activity.
One of them is the cost of electricity, which is low only in winter, but generally speaking it is a little high. This has led to a process of migration from mining centers to those countries where electricity costs are lower.
One of these nations is Iran. In that sense, companies like Lubian, have been advising and investing in that nation. They are also developing relationships within the government to secure their business.
Bitcoin mining companies from China and Iran are developing closer relations to operate in the Persian country.
China’s Bitcoin mining company, Lubian, is one of the most powerful in the world.
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Opening after a period of persecution
As in several countries, in Iran, Bitcoin mining was considered illegal at the time. Until recently, the authorities prosecuted those involved in it and the punishments for this „criminal“ act were exemplary.
The authorities were trying to control the massive growth of this activity which threatened the stability of the country’s electricity system. There are reported cases of sacred centers such as mosques, which took advantage of state-subsidized energy to mine Bitcoin.
However, it should be remembered that Iran is a country sanctioned by the United States. This forces them to open up to alternative businesses and take advantage of them.
In this case, the use of crypto-mining in a controlled manner, could be becoming a source of income, since it attracts investors from other countries.
Crypto currencies in Iran are used to evade U.S. sanctions
According to Lui Ping, co-founder of the aforementioned Chinese mining company Bitcoin, Lubian, a powerful partnership is being developed with a „huge“ mining company in Iran.
Capital from both nations, both China and Iran, would be participating in the partnership. „There are very good local resources in Iran and we have very good relations with the energy minister, the foreign minister and even in the military,“ Ping said.
It should be noted that Lubian is one of the most powerful Immediate Edge mining companies in the world. It currently ranks sixth in hashrate within China, representing 3% of all Bitcoin hash.