Iran bans mining cryptocurrencies for a period of four months
Iran bans mining cryptocurrencies for a period of four months

After frequent power outages in some major cities in the country, Iran has temporarily banned the mining of cryptocurrencies.

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

In recent years, the country has experienced summer failures.

The current round of power cuts is mainly due to a drought affecting the country's hydropower capacity.

The Iranian government appears to be interested in curbing aggravating factors such as cryptocurrency mining that increase energy consumption.

Iran implemented a plan requiring bitcoin miners to register with the government, pay bills for additional services, and sell foreign currency to the central bank.

President Rouhani said that the country's legal mining activities are consuming about 300 megawatts per day.

According to reports, the Iranian public grid operator Tavanir is more conservative at 209 MW and daily use is more conservative.

Illegal cryptocurrency mining:

Compared to the 2,000 megawatts that illegal miners would have used for cryptocurrency, both numbers are very low.

Illegal miners are believed to make up 85% of the country's operations.

The deputy minister of electricity and energy even told news outlets that miners use free electricity in mosques for mining activities.

President Rouhani appears to be joking about the number of unlicensed mines in the country and said that anyone with a few miners produces bitcoin, although he also said that unlicensed miners are the reason for the ban that will apply to everyone in the country. country. Mining land.

According to the British Broadcasting Corporation (BBC), licensed mining operations have been closed voluntarily.

Those who break the law likely won't stop because government orders, but Iran is cracking down on unauthorized operations and recruiting spies to track them down.

Tavanir also offers rewards for reporting illegal minors.

Cryptocurrency watchers outside Iran may want to watch the price of Bitcoin to see how it interacts with the estimated mining capacity of the network, which has a risk of 3.4% to 4.5%.

Bitcoin has recently experienced a period of turmoil: India and parts of China want to ban Bitcoin, and Tesla stops accepting this cryptocurrency for environmental reasons.

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