Cryptocurrency

Iran orders miners again to stop crypto operations

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Iran’s authorities have once again advised licensed miners to halt operations because of electricity shortages during the frigid winter months.

Following a similar period of limitations last summer, authorized mining companies were permitted to begin operations in September.

With low temperatures expected to raise energy demand across the country in the coming months, the Iranian government is already taking steps to curb usage and avert a power shortage.

As was the case earlier this year, the measures will have a negative impact on the country’s burgeoning cryptocurrency mining sector.

According to the English-language business newspaper Financial Tribune, Tavanir, the Iran Power Generation, Distribution, and Transmission company, recently advised authorized bitcoin mining centers to unplug their power-hungry hardware.

Iran’s Energy Ministry has been attempting to minimize the usage of liquid fuels in power plants since last month, according to Tavanir’s representative Mostafa Rajabi Mashhadi.

According to the source, in addition to cutting off power to licensed crypto farms, other measures include turning off lampposts in safer areas at night and strictly monitoring energy consumption.

The utility expects that by taking these steps, it will be able to avoid blackouts during peak winter usage.

For the time being, Mashhadi said that Iranian power plants had been successful in saving fuel, but he also cautioned consumers to use gas and electricity sparingly.

It’s not the first time this year that Iran’s licensed miners have been asked to shut down their machinery.

To deal with an increasing demand for electricity and an inadequate supply caused by the hot and dry weather, the Iranian government temporarily banned crypto mining in May.

In 2019, the government of the Islamic Republic of Iran approved a license scheme for enterprises interested in bitcoin mining, making it legal in the country.

As a result of the higher export rates needed to power registered crypto farms, many Iranian miners have chosen to operate under the radar and use government-subsidized domestic electricity.

 

Image courtesy of Cointelegraph News/YouTube

Jet Encila

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Jet Encila

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