Iran has put a temporary ban on crypto mining in the country owing to a slew of blackouts in the region that has hampered many business operations. The temporary ban will start from May 26 and continue until September 22. The Iranian president made it clear that the ban is primarily due to illegal mining in the country as the regulated crypto mining only consumes 300 megawatts. The president said,
“The authorized mining of cryptocurrencies does not consume much electricity and needs just around 300 megawatts. However, it is unauthorized crypto miners that consume a lot of electricity; they consume about 2,000 megawatts,”
“As of today, it will be forbidden even for authorized miners to mine cryptocurrencies until late September.”
Iran has become a hub for regulated crypto mining after the government decided to authorize mining in the country due to the availability of ample clean green energy and growing sanctions from the US. Right before the temporary mining ban authorities conducted many search operations in homes for illegal mining activities as well.
Bitcoin and Cryptocurrency Soars in Demand Amid Financial Turmoil and US Sanctions
Rial, the national fiat currency of Iran has seen its value cut in half over the past decade owing to high inflation aggravated by several trade sanctions put by the US. The Iranian government last year even changed the standard of the national fiat by dropping four zeroes from its value and called Toman. Each Toman is equivalent to 10,000 trials.
Cryptocurrencies especially Bitcoin emerged as the collective choice for the government which at one point was looking to use it to bypass international trade sanctions. The mining industry in the country was among the selected few to be regulated, but despite that illegal mining has continued to run havoc on the electric grid of the country.