This move comes in after multiple power outages plague the country as the government points their finger at crypto miners.
Iran’s ban on crypto mining
President Hassan Rouhana of the Islamic State of Iran announced on Wednesday that crypto mining, even legal crypto mining for that matter, will be prohibited in the whole country for a period of four months, i.e. till 22 September. “As of today, it will be forbidden even for authorized miners to mine cryptocurrencies until late September,” the President added.
This major step taken by the government of Iran comes in after multiple power outages plague the country in various states, including Tehran, the nation’s capital.
To what extent was Iran mining crypto?
To put that into perspective, Iran was responsible for 4% of the global Hashrate. That is a lot of energy if you put that on a scale.
Unauthorized mining plants were the major problem for Ira. In this situation, the allotted power limit to miners was 300 MW, and in reality, around 2000 MW was being used, President Rouhana stated.
Maybe after all this time, Elon Musk was right with his predictions about energy consumption and its relation with mining, especially its ill effects on countries such as Iran, where power cuts in the summer season are a common sight.
According to the head of the digital economy commission of the Iranian parliament, “The reason behind the power outages is not cryptocurrency mining, it’s stopping the funding and the old distribution and generation network”.
“The reason behind the power outages is not cryptocurrency mining; it’s stopping the funding and the old distribution and generation network,” he said. This statement serves as a defence for the mining community, stating that the power outages are mostly of Iran’s poor fund distribution and not crypto mining.
Various mining farms have since been shut down due to grid failure and the hot weather in Iran; stay tuned to our website to know more about Iran’s clash with crypto miners.