The government has imposed an embargo on cryptocurrency mining in the country in order to reduce the load on the electrical grid during the summer months.
This decision was reported on television on May 26 byPresident Hassan Rouhani. A complete ban on mining will be in effect until September. As energy consumption increases significantly during the summer months due to the heat, authorities fear that cryptocurrency mining activities during periods of peak demand could lead to power outages due to lack of generated electricity and network congestion.
Such radical measures are also due to the fact thatMost Iranian miners (up to 85%) operate without a license in order to pay lower electricity rates. Since last year, the government has been actively fighting against underground cryptocurrency mining.
In April, one large Iranian bitcoin farm alreadycaused massive power outages as it consumed most of the region's energy. In order to avoid a repetition of a similar situation, it was decided to stop it for 4 months.
According to experts nationalization of mining helps Iran bypass economic sanctions and can bring the country’s treasury up to $1 billion annually.
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