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Crypto Recovers; Miners Could Face Extra Costs in Iran and Russia

Published 06/11/2019, 01:08 AM
© Reuters.
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Investing.com - Major cryptocurrencies reversed losses on Tuesday morning in Asia, with Bitcoin testing $8,000 again.

Bitcoin rose 3.64% to $7,926.7 by 12:57 PM ET (04:57 GMT). Ethereum added 4.34% to $244.38, XRP gained 1.51% to $0.3935, and Litecoin was up 9.13% to $127.78.

Meanwhile, crypto enthusiasts were digesting reports that cryptocurrency miners could face higher electricity bills in Iran or even fines in Russia.

Iran’s Energy Minister Homayoun Haeri said cryptocurrency miners should not get subsidized by the government. The Middle Eastern country spends around $1 billion to subsidize electricity so Iranian households just pay part of the electricity bill.

Currently, Iran bans its citizens from mining and trading crypto coins. But the country’s cheap electricity has lured miners after China cracked down on crypto mining. Iranian are also increasingly interested in trading crypto coins to counter the sanctions imposed by the U.S.

Russia is also considering a fine for crypto miners as the government may introduce administrative responsibility for digital currency mining.

“I note that any operations with cryptocurrency that are contrary to the Russian legislation will be considered illegitimate. This means that mining, organizing issuance, circulation, creating exchange points for these tools will be prohibited. Administrative liability in the form of a fine will be incurred for such actions,” said Anatoly Aksakov, the chairman of the State Duma Committee on the Financial Market.

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