Iran bans cryptocurrency mining until September to ensure the population's electricity supply

Iran has banned cryptocurrency mining until September after a series of blackouts in the country's major cities. Iran is concerned that the consumption of mining affects the electricity supply for the population.

The ban on cryptocurrency mining in Iran has gone into effect immediately. It will last until September 22 according to an announcement by President Hassan Rouhani on state television. This ban, despite being temporary, follows a regional ban in China, the main Bitcoin mining country.

Iran wants electricity for civilians, not miners

Iranian officials blame increased mining, as well as increased manufacturing and a drop in hydroelectric power supply, for the blackouts the country is experiencing. The government has been cracking down on the 85% of mining that is not licensed. It is even recruiting spies to track down miners who are hiding computers for mining.

The University of Cambridge estimates that Iran produced 3,4% of Bitcoin mining in the first four months of 2020, placing it in sixth place globally. Iran's 50 licensed mining centers are spread across 14 of its 31 provinces and consume a total of 209 megawatts of electricity, power grid operator Tavanir said in a statement on Wednesday, according to the Tasnim news agency.

Iran has been in an energy crisis for years due to the limitations it has placed on nuclear power. Iran is negotiating with the United States and other world powers to reactivate the 2015 nuclear deal, which would ease sanctions and allow foreign companies to provide much-needed infrastructure investment in its power grid and satisfy the population. But it is not just cryptocurrencies that have been limited by the Iranian government. They have also banned the use of air conditioning to ensure that electricity consumption does not exceed its production capacity.

Source: Bloomberg