Iran to cut crypto mining

A new report suggests that Iran may soon cut electricity power from crypto mining activities as the country’s electrical grid is under constant duress.

After China’s announcement to suspend all mining operations in the country, Iran became the next preferred spot for many crypto mining companies.

The country itself thought it would be a good idea to host more miners. However, It was ill-prepared for what followed; brownouts became frequent in Iran with each new Bitcoin (BTC) rig switched into the grid.

Firstly, the country ended up banning retail consumers from mining BTC and even started conducting police operations to arrest offenders. Now, Iran enters a season of increased demand and it’s inevitable that cryptocurrency miners would only add more strain to the electrical grid. The country is said to be suspending miners’ access and should come into play today, according to a Bloomberg report.

Crypto mining has long been recognized as an important part of Iran’s economic survival. The country has become a master of procuring items of value because Western-led sanctions against it have disrupted normal trade and business.

Still, it seems Iran finds the adoption of cryptocurrency mining challenging enough to require a more centralized approach. Additionally, the country has started hiking the electricity rates paid by miners and even asked companies to sell their BTC to Iran’s central bank.

Iran accounted for 4.5% of all BTC mining as early as May 2021. However, the increase in electrical consumption and insufficient amounts for retail consumers have forced the country to act a little more gung-ho against miners, thus controlling how much electricity they can use.

Starting tomorrow, miners will be hard pressed to find electricity to continue mining.

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Source

Updated: 06/22/2022 — 13:00

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