Iran Decides To Cut Power Supply For Crypto Mining Activities

• Iranian authorities issued permits to 1,000 crypto miners in January this year.
• It was estimated that illicit miners used roughly 600 megawatts of electricity.

The Iranian Ministry has decided Energy curtail the energy supplied to the country’s officially recognized crypto mining operations. According to Tehran Times, this decision will come into effect on Wednesday. The action is being done to prevent unlicensed miners from receiving energy.

Illegal Miners Causing Major Hurdle

Iranian authorities issued permits to 1,000 crypto miners in January this year to mint the coin. 118 permitted mines are now using the country’s electrical supply. In the preceding week, the nation used 62,500 megawatts of electricity. Consumption will likely rise over the 63,000 MW threshold, putting a strain on the country’s power grid.

To save energy, Iran’s government outlawed cryptocurrency mining last year. At the time, it was estimated that illicit miners used roughly 600 megawatts of electricity. This year’s prohibition is in effect until the beginning of March. The domestic sector might have access to an additional 209 megawatts of electricity.

Illegal mining has been a problem in Iran for a long time now. In 2019, the Iranian government allowed the operation of crypto mining. Around 1,000 mines were permitted access to the electricity supply at the beginning of 2020. As a result, mining operations in the nation saw an uptick. Then, a few unauthorized miners began minting the tokens with the domestic supply.

Also, in 2021, Iran’s Minister of Mines warned the unregistered miner that they would be fined heavily for damaging the country’s electrical supply. Iran’s energy sector and its resources are already in jeopardy due to climatic challenges, including drought and rain shortages due to bitcoin mining.

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