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Iran bans mining cryptocurrency for a period of four months

Prohibit Iran Temporarily mining cryptocurrencies after some major cities in the country suffered frequent power outages.

President Hassan Rouhani said the ban would continue until September 22.

And the country has seen Interruption The electrical current in the summer in past years.

The current round of blackouts is often blamed on droughts affecting the country’s ability to generate hydroelectric power.

The Iranian government appears eager to reduce any exacerbating factors such as, for example, energy-hungry cryptocurrency mining operations.

Iran runs a program where Bitcoin miners must register with the government, pay additional fees for electricity, and sell currencies to the central bank.

President Rouhani stated that the country’s legal mining operations consume about 300 megawatts per day.

Iran’s state-owned network operator, Tavanir, has reportedly claimed a more conservative daily use of 209 MW.

Illegal cryptocurrency mining:

Both numbers are small compared to the 2,000 megawatts reported to be used by illegal cryptocurrency miners.

Illegal miners are said to make up 85 percent of state operations.

The deputy minister of electricity and energy even told a news organization that miners use the free electricity available to mosques to run mining operations.

President Rouhani appeared to joke about the amount of unauthorized mining in the country, saying that everyone with a small number of miners produce bitcoins, although he also said that unlicensed miners were the cause of the ban, which would apply to all mining in the country.

According to the BBC, the licensed mining operations have been voluntarily stopped.

While it can be said that those who violated the law may not be likely to stop because the government told them to do so, Iran is cracking down on unauthorized operations, and recruiting spies to track them down.

And Tavanir also provides bonuses for reporting illegal miners.

Cryptocurrency watchers outside Iran will likely want to monitor the Bitcoin price to see how it interacts with an estimated 3.4 to 4.5 percent of the mining capacity of the network that is at risk.

Bitcoin has had a recent turbulent time, with India and parts of China looking to ban it, and Tesla has also stopped accepting the cryptocurrency, citing environmental concerns.

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