Tuesday, November 30, 2021

Crypto miners in Iran ordered to halt all mining activities amid sweeping power outages.

The Takeaway:

Crypto miners in Iran have been ordered to halt all crypto mining activities as the government responds to sweeping power outages across the country.

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Crypto miners in Iran have been ordered to halt all cryptocurrency mining activities as the government acts in response to sweeping power outages across the country. The instruction came from the first vice president of Iran, Eshaq Jahangiri, who said all of the country’s licensed mining companies should halt production. It comes against the backdrop of ongoing restrictions on electricity supply in the country, driven by the resource-intensive crypto mining sector. 

 

 

Crypto mining restrictions are expected to remain in place until August.

Crypto mining restrictions are expected to remain until August, coinciding with the timeline set out by Iranian president Hassan Rouhani for banning unlicensed cryptocurrency mining in the country to avoid further power outages. Jahangiri spoke equivocally in instructing crypto mining firms not to contribute further to the energy supply problems plaguing residents and businesses across Iran. “We will ensure that the electricity will not be cut off in essential and important places. Licensed miners must also stop production altogether,” he added. 

 

Iran continues to weed out illegal crypto miners. 

Iran made cryptocurrency mining legal back in 2019, with a licensing and regulatory regime to structure the industry and allow the government to control activity in the sector. However, recent months have seen the growth of crypto mining companies and unregulated home mining, putting national infrastructure under significant strain. As a result, Iran has shut down many crypto mining farms in recent weeks. Law enforcement agencies fond setups with as many as 7,000 mining rigs operating illegally via domestic electricity supplies. The ban will come as a further blow to miners operating in Iran at a time of increasingly stringent regulation for miners across countries.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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