Iran orders even licensed crypto miners to immediately stop production
- Iran has growing concerns about the effect crypto mining has on the country’s power supply.
- Expecting electricity issues during the summer, the country ordered all licensed miners to stop production.
- Mining will be forbidden at least until August, or potentially September of this year.
Iran has recently started making a number of moves to take crypto mining under control. After a recent bill that threatened to ban all foreign-mined cryptocurrencies, the country has now once again ordered its local miners to stop production immediately.
The country has made a similar move back in late May due to power outages, and now, it is doing it again. According to a report from the Tasnim News Agency, the country’s first vice president under Hassan Rouhani, Eshaq Jahangiri, stated that the country is likely to keep this restriction at least until early August. At the very least, that is how long the Ministry of Energy officials predict that the electricity restrictions are going to last.
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As mentioned, Iran’s president has already announced crypto mining in May, noting that it will not be allowed until September in order to conserve power during the summer. Now, the VP repeated the same, claiming that the officials will do everything in their power to ensure that electricity will not be cut off in essential and important places.
However, in order to guarantee this, the government has to order licensed miners to stop production altogether.
Iran’s crackdown on illegal miners
Cryptocurrency mining has been exploding in Iran ever since 2019, when it reached the stage of an industrial activity. It has been legal ever since, although in order to do it legally, miners have to be licensed and regulated.
With that said, there is also no shortage of unlicensed miners, some of which have only had a handful of rigs, while others set up thousands of them. These individuals tapped into Iran’s electric grid illegally, which forced the authorities to go on a series of raids and force them to shut down their activities, seize the equipment, and fine the owners.
The crackdown is still on-going to this day. Meanwhile, as mentioned, Iran is also planning on banning the use of payments with cryptocurrencies that were mined outside of the country. The recent bill, if passed, will make the country’s central bank the primary regulatory authority for the exchange of digital currencies.