Bitcoin mining in Iran will be temporarily suspended…

Bitcoin mining in Iran will be temporarily suspended… post thumbnail image

The country’s authorities want to save energy for heating buildings.

Iranian authorities have imposed a temporary ban on mining the biggest cryptocurrency, Cointelegraph reported, citing local media outlets.

  • The aim of state authorities is to save electricity for heating buildings in winter, said Mostafa Rajabi Mashadi, Chairman of the Board and Managing Director of Iran Network Management Company (Tavanir).

“The Department of Energy has implemented measures since last month to reduce the use of liquid fuels in power generation, including cutting off electricity to licensed crypto farms, removing light poles in less risky areas, and tightly controlling consumption,” he said.

  • According to local data, 70% of the fuel consumed in Iran is used to heat buildings. The new energy saving measures are expected to reduce energy consumption by 40%. The air temperature in the region dropped to 1-8 degrees Celsius.

  • When domestic mining will be allowed again, is not reported.

  • This is not the first time cryptocurrency mining has been banned in Iran. In May, President Hassan Rouhani temporarily banned licensed mining due to increased electricity consumption during the summer. Bitcoin mining resumed on October 1.

Recall that mining in Iran became legal in May last year. As of June 2021, state authorities have issued 2,579 work permits in the field of cryptocurrency mining.

Read also: bitcoin miners earn 3 times more in 2021 than in 2020, according to TheBlock.

Iran has become one of the largest cryptocurrency mining countries in the world. It accounts for, according to various estimates, from 4.5% to 7% of the world’s bitcoin hash rate.

Cambridge Bitcoin Electricity Consumption Index Dynamics.
Source: Cambridge University.

The Iranian government is also battling shadow miners. In late November, authorities told the media that since the legalization of the industry, they had seized 222,000 devices used to mine cryptocurrencies illegally. According to Iranian authorities, 85% of the country’s bitcoin mining capacity is unlicensed.

Let us remember that Kazakhstan is facing the same problem. To overcome this, the state authorities want to limit the activities of mining companies in the country. However, the Ministry of Energy changed its mind – instead, the regulator proposed identifying “grey” miners and creating “green” capacity.

Read also: Russia reforms electricity tariffs because of miners.

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