Iran Places Restrictions on Crypto Mining | CoinGabbar News

Iran Places Restrictions on Crypto Mining

The regional bitcoin community has expressed opposition to the recently reinstated seasonal prohibition on cryptocurrency mining. The nation's power distribution provider ordered miners to halt operations this week, citing electrical shortages during the summer.

The Iran Power Generation, Transmission and Distribution Company (Tavanir) has instructed cryptocurrency miners to cease operations once more till the end of this summer after they were forced to deal with power outages on many occasions last year. 

Mostafa Rajabi Mashhadi, the company's spokeswoman, stated that the action should assist lower the excessive demand on the national grid during the peak season. Stakeholders have criticised the action, saying it is unfair and will affect Iran's bitcoin mining sector as early as 2021.

The increased power use for mining, both legal and illegal, was largely blamed for the power shortage and the frequent blackouts, and licensed miners were told to stop operating in May.

According to the Cambridge Centre for Alternative Finance's Bitcoin Mining Map, Iran's share of the world's hashrate dropped to just 0.12 percent as a result of the several shutdowns that occurred last year, effectively driving Iran out of the cryptocurrency mining business. 

Some Iranians believe that removing the bitcoin miners from the frame would have very little effect on the power supply because they only account for a small fraction of the network's load.

It's also unclear why all miners around the nation are meant to stop working as some crypto farms actually run in regions of the nation without electricity problems.

2019 saw the industrialization of cryptocurrency mining in Iran. Numerous businesses have since requested a licence from the Ministry of Industry. Mohammad Khodadadi, the Tavanir executive in charge of the mining industry, recalled that the government resolution expressly prohibits miners from purchasing power during periods of high demand. 

Iranian cryptocurrency miners have few options now that it is clear that the nation's power network cannot fulfil their needs. The first is to just wait for the authorities to end the restriction. Another option is to install diesel generators that run on alternate fuels or to rely on renewable energy sources for power generation. The fourth option is to secretly carry on with unlawful digital coin minting at their own risk.