Iran Outlaws Bitcoin Mining Amid Power Shortage Crisis

[RSRS]

Iran has experienced recent issues with rolling blackouts and power shortages that have been blamed on new bitcoin mining farms in the region.

After suffering through numerous power outages in Tehran and several other large cities, the Iranian government has placed the blame on Bitcoin miners. Specifically, new operations that have sprung up in the wake of China’s sweeping bans on crypto-mining claims a new report by CNBC. Many of these mines are also operating illegally without a license, according to government officials.

The belief among officials in Iran is that a majority of the energy needed to power cities is being used by illegal miners. Officials didn’t place the blame solely on the shoulders of miners, however, and added that natural gas shortages and drought have had a negative impact on Iran’s hydropower capabilities.

President Hassan Rouhani made the announcement that effective immediately, a ban on cryptocurrency mining would be in effect. The ban would be in place until September 22, Rouhani told state TV.

Iran’s fight against illegal crypto-mining
The issues Iran has with cryptocurrency extend past power consumption, but have often seen miners involved. In January, Iranian police discovered an illegal mining operation that was using around 50,000 rigs to mine bitcoin. The miners were reportedly churning out 95 megawatts per hour of power. Making matters worse, the power was being supplied at a state-subsidized rate, as reported by Tavanir. Later, in June, the Iranian police reportedly seized more than 7,000 mining machines in a raid of a factory in Tehran.

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