Iran’s government has decided to save electricity during the peak summer season by banning cryptocurrency mining
As reported by Bloomberg, Iran has banned its local crypto miners from supporting Bitcoin and other cryptocurrency networks before the summer – when electricity demand is at its highest in the country. The reason is that Iranian officials have blamed the blackouts on the rising electricity demand that goes with crypto mining. Among other root causes, which include the heat, and drought that in turn affect the generation of increases.
— Bloomberg Crypto (@crypto) May 26, 2021
Iranian officials are blaming the rolling blackouts partly on cryptocurrency mining activities
The rolling blackouts are the latest measure the Iranian government is putting in place to reduce the environmental impact of cryptocurrency mining. It is a hotbed of activity for the mining community, who find its subsidized energy prices appealing.
The government even permitted power plants to mine cryptocurrencies in their own right back in 2020. However, in the last couple of weeks, Iran has started cracking down on crypto mining activities. Due to the increased strain on the country’s power grid. And recent power outages in several major cities also prompted the authorities to come to this decision.
Iran’s Bitcoin mining ban will continue until the end of September, as announced by President Hassan Rouhani on local TV on May 26. 85% of miners working in Iran have done it without any license. This step could force the majority of licensed miners to switch to the black market.
According to Bloomberg, authorities have even sent spies to help finance illegal mining farms located in private residences and sometimes, even in mosques.
Earlier, China also announced a new direction for cryptocurrency mining in the country. Bloomberg’s sources claim that this follows several fatal incidents in coal mines in several areas of China. These mines were used without permission from the authorities as the demand for coal power from Bitcoin miners increased.
“Rising coal demand prompts some producers to restart idled mines without official approval, leading to higher safety risks and a jump in deadly accidents this year.”
China’s new crackdown on crypto miners has pushed Bitcoin below $40,000 and BTC is close to hitting $30,000. However, earlier today, the price of the leading cryptocurrency regained the psychological $40,000. This comes after Elon Musk and Michael Saylor met last week with the executives of top US Bitcoin miners to discuss the move to renewable energy and forming the Bitcoin Mining Council.
Less than a week later, Iranian government intelligence officers were rooting out any illegal crypto miners. The country’s Ministry of Intelligence established committees in various regions to locate and seize any unlicensed mining farms.
2021 has already seen the reward doubled for any tip-offs towards illegal crypto mining activities. The reward amounted to 200 million rials, which equates to nearly eight times the monthly minimum wage in Iran.
- Hong Kong Securities Regulator May Be Empowered To Prohibit Operations Of Licensed Crypto Service Providers
- Some Russian Officials Now Working On Amendments That Will Permit The Use Of Bitcoin And Cryptocurrencies As A Contractual Means Of Payment