Updated · Nov 16, 2022
Iran to Cut Electricity Supply to Crypto Miners
Updated · Jun 20, 2022
Licensed crypto mining operators in the country will experience a blackout from June 22nd.
Off the National Grid
In a bid to curb the strain on the country’s supply, Iran is gearing up to cut off the power available to cryptocurrency miners. With this move, the government is shoring up efforts to prepare for seasonal spikes in electricity demand.
The Energy Ministry’s spokesperson for the electricity sector, Mostafa Rajabi Mashhadi, disclosed the plans in an interview with a state TV. According to Mashhadi, all authorized crypto mining operators (currently 118) must disconnect from the national grid from the beginning of the new month.
This translates to June 22nd in the Gregorian calendar.
As interest in Bitcoin mining soared, Iran officially approved it as industrial activity in 2019. And unlike in many other countries, the government was quick in regulating the activity, dishing out licenses to operators.
Miners took advantage of the country’s relatively low electricity costs. In 2021, Blockchain analysis firm Elliptic estimated that about 4.5% of all Bitcoin mining originated from Iran.
But it has not been smooth sailing. Due to the cryptocurrency’s energy-intensive Proof-of-Work (PoW) mechanism, the country soon began experiencing major power issues. Since 2020, the Iranian government has ordered several holds on mining activities.
Iran is not the only country to have cracked down on cryptocurrency in the face of energy and economic issues. In January, Kosovo’s government took similar steps by banning mining amid a severe energy crisis.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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