Iran Resumes Bitcoin Mining Industry After Three-Month Ban
- The government banned mining for three months in May.
- Officials in Iran have been chasing unlicensed miners.
According to the Financial Tribune, the Iranian Ministry of Industries, Mining, and Trading has lifted a three-month ban on bitcoin mining.
Iran has long known that Bitcoin mining is a viable alternative for a country that lacks hard money but produces many oil and gas. Iran is home to around 4.5 percent of the world’s Bitcoin miners. Moreover, Iran’s government enabled miners to evade sanctions while generating hundreds of millions of dollars in crypto-assets.
The government banned mining for three months in May for many reasons, including protecting the power supply. President Hassan Rouhani cited a heatwave as a reason for the restriction, saying it was hampering hydropower output.
Authorized Miners Vs Illegal Bitcoin Miners
Illegal Bitcoin mining is the leading cause of power shortages in the nation, say, officials. These miners use up to 2,000 megawatts of energy, placing a strain on the system during the summer. Authorized bitcoin miners use just 30 MW.
When the hot weather produced a surge in power consumption, the Iranian authorities announced that permitted miners would be shut down during peak periods. The government ultimately decided to implement a summer-long mining ban.
Officials in Iran have been chasing unlicensed miners, saying they waste energy and damage the power system. Desperate to stop illegal mining, Tavanir started recognizing it. The utility confiscated an estimated 180 trillion rials ($4 million) worth of mining equipment last year.
The country has granted around 1,000 Bitcoin mining licenses since 2020. A measure introduced in parliament would ban foreign cryptocurrencies for payment in the country, while the government seems keen to concentrate its crypto mining sector.
Bitcoin mining is legal in Iran because it expects it to be a $1 billion industry by May. The summer ban, though, makes the objective unattainable.
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