Here’s the latest chapter in Iran’s clampdown on crypto-miners
The crypto-community of Iran has shared its opposition to the reinstated seasonal limit on cryptocurrency mining. Despite being aware of the potential of cryptocurrencies as a way to avoid international sanctions, the government is once again limiting crypto-mining operations to reduce the burden on the nation’s power supply.
According to reports, 118 government-approved mining firms in Iran no longer have access to electricity due to seasonal increases in demand. This decision was made by Mostafa Rajabi Mashhadi, a spokesman for Iran’s power sector.
After having to deal with many power disruptions last year, the Iran Power Generation, Transmission, and Distribution Company (Tavanir) has ordered cryptocurrency miners to halt operations once more until the end of this summer. The utility company is blaming projected electricity constraints for the anticipated three months of hot weather when demand would rise due to rising cooling consumption.
According to Mostafa Rajabi Mashhadi, this step will lower excessive demand on the national grid during the peak season. The move has been criticized by stakeholders, however, who believe it is unjustified and will harm Iran’s cryptocurrency mining industry.
The sustained use of power for mining, both legal and illicit, was largely blamed for the power shortage and frequent blackouts. To help with the energy shortages in the chilly winter months, when demand for energy increases for heating purposes, they were once more instructed to unplug their equipment after being permitted to restart operations for a while.
According to the Cambridge Centre forAlternative Finance’s Bitcoin Mining Map, Iran’s share of the world’s hashrate dropped to just 0.12% as a result of shutdowns last year.
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