It is especially important that countries become more knowledgeable about cryptocurrencies, especially with components such as decentralized finance that are gaining in importance. Now that the Middle East is more suitable for mining, the future of this region looks bright again.

Pakistani government legalizes cryptocurrency
The Pakistani government appears to be rapidly moving towards a position in support of the cryptocurrency. Following the decision to integrate bitcoin (BTC) into the financial system last December, the country is taking steps to legalize mining.

Sumira Shams, a member of the Khyber Pakhtunkhwa State Council, said on Twitter that the commission voted to pass a law to legalize mining:

Khyber Pakhtunkhwa is one of the largest provinces in Pakistan. It is located in the northern region of the country and is the locomotive of the country’s development. According to another confirmation by Ziaulla Pangash, chief adviser to the region’s prime minister for science and information technology, the region voted to legalize mining.

Local news sources said the council passed legislation clarifying the obligation to use what could become money in the future. Legislators have made it clear that they believe that cryptocurrencies will eventually replace fiat currencies and that it is important for them to be at the forefront when this happens.

By taking part in mining, they hope to start the next economic revolution. The bill was passed unanimously and showed that legislators are truly committed to expanding their digital and economic space.

Wakar Zakka, an influencer and pro-cryptocurrency activist, tweeted: “It’s over, there are only three left.” While this does not mean that all of Pakistan has switched to mining, it is indeed a step in the right direction.

It is unclear how the northern region wants to implement its mining strategy. However, it must be able to develop a robust industry-wide regulatory framework that ensures investment flows.

Iran is redoubling its mining efforts
Pakistan is not the only country in the Middle East to quickly violate its mining laws. In fact, he is currently tracking Iran in this regard.

Iran quickly adopted cryptocurrency. The state initially banned the activity, noting that residents had begun digging up mosques. Most mosques receive subsidies from the state and miners operate them to make sure they benefit from them.

The situation was especially dangerous because at that time the cryptocurrency began to gain a foothold in Iran. Unfortunately, the situation worsened when the government began to confiscate mining equipment housed in mosques. The case report claimed that Mustafa Rajabi Mashhadi, an official in Iran’s energy ministry, pointed to a 7 percent jump in electricity consumption in June 2019.

Mashhad allegedly added that coded memory workers are responsible for the increased consumption. Then the government decided to take precautions to avoid any problems with the Iranian power grid. He indicated that the government will identify the miners and immediately disconnect them from the power grid until all parties come to a reasonable agreement on the miner’s pricing policy.

In November 2018, Iran ranked first on the list of global energy subsidies, providing up to $ 45.1 billion annually. This number was one-tenth of the annual GDP that year. Given that Iran has faced tough economic sanctions from the US government and the international community in connection with its nuclear program, it cannot afford to pay more subsidies.

However, this same policy forced the country to reconsider its policy. In July, the Iranian government officially ruled that the cryptocurrency would be declared an industrial activity in the country. The Mehr news agency said the government held a cabinet meeting headed by President Hassan Rouhani.

Legalization has basically turned the mining industry into a formal industry. At the same time, individuals and companies wishing to participate in the activity will have to obtain licenses from the Ministry of Industry, Mining and Trade.

It was a perfect match. Electricity prices in Iran are very low. World gasoline price statistics at that time showed that the price in the country was approximately $ 0.005 per kilowatt hour. Considering that this is much better than what is charged in other countries, there is no doubt that it will be beneficial.

To date, more than a thousand people and units have infiltrated the mining region of Iran and connected to cheap electricity. On the contrary, the country has increased income and taxes.

Source: CoinTelegraph