Home Trade And business Iran bans cryptocurrency mining as power cuts increase

Iran bans cryptocurrency mining as power cuts increase


We are thrilled to have you on our site. If you enjoy the post you have just found kindly Share it with friends.

Iran has banned the mining of digital currencies after a number of its cities, including Tehran, suffered frequent power outages due to the increasing pressure on the electricity infrastructure.

The state energy company, Tavanir, said on Wednesday that the country has only 50 licensed Bitcoin farms, and that 85 percent of the mining is done illegally and runs on 95 megawatt hours of subsidized energy. According to The Independent newspaper.

A study indicated that Iran now accounts for 4.5 percent of the world’s bitcoin mining.

According to the statistics company “Eleiptek”, this activity allows Iran to bypass sanctions against it and obtain hundreds of millions of dollars of crypto assets that can be used to buy imports.

Iranian President Hassan Rouhani said, in an interview on state television, that the ban was in effect until September 22, and blamed the problem on unlicensed bitcoin mining.

And there is disagreement within the Iranian parliament about whether cryptocurrency mining is really the cause. The head of the Digital Economy Committee, Mojtaba Tavanagar, recently insisted that the sector represents only one percent of domestic energy use. “The reason behind the power outages is the distribution network,” he said. An ancient obstetrician ».

This is not the first time that Iran has cracked down on illegal Bitcoin mining, as the country seized 50,000 computers in January. A reward of 200 million Iranian riyals ($ 4,000) was offered to anyone who provided information on any illegal mining activity.

China and Turkey have also taken similar steps against the cryptocurrency this year after its popularity blossomed during the pandemic.


Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of Algulf.net and Algulf.net does not assume any responsibility or liability for the same.


Please enter your comment!
Please enter your name here