Stabilizing power supply Iran’s president announces ban on crypto mining by Sept. 22

Iran will shut down cryptocurrency mines during peak electricity consumption due to the need to maintain a stable power supply for other users.

Stabilizing power supply Iran's president announces ban on crypto mining by Sept. 22

On May 26, the president of Iran announced that crypto mining will be banned until September 22. Recent reports in Iranian local media say that there have been problems with Iran’s power supply recently, and many places in Iran have started to take measures to rotate power outages, which have previously occurred without warning and caused public discontent. Due to the need to maintain a stable power supply for other users, Iran will shut down cryptocurrency mines during peak electricity consumption.

In response, a spokesman for Iran’s electricity department said in an interview with Iranian media on May 24 that the main reasons for the power shortage are hot weather, rising electricity consumption due to industrial prosperity, reduced hydroelectricity due to drought, and too much electricity consumption by Iran’s private cryptocurrency “mining” sites. Iran’s electricity ministry has said it will stagger electricity consumption, build new power plants and stop cryptocurrency “mining” in the future.

The measures aimed at addressing the energy shortage will target licensed mining sites, although the government acknowledges that illegal crypto miners consume more energy. According to official figures, licensed cryptocurrency mines use up to 300 megawatts of electricity per day. Mostafa RajabiMashhadi, a spokesman for Iran’s Energy Ministry in charge of the electricity sector, said this power could be saved to maintain a balanced and stable grid.

According to estimates from blockchain analytics firm Elliptic, Iran’s annual bitcoin mining revenue could be as much as $1 billion. Despite the huge revenue the mining industry brings to Iran, the country is facing a shortage of electricity due to the surge in electricity used for cryptocurrency mining in the country and the current decrease in hydroelectric power generation in the country.

Mostafa RajabiMashhadi, a spokesman for Iran’s Energy Ministry, noted that unauthorized cryptocurrency mining affects electricity supply. Recently, the Iranian government also announced that it will impose huge fines on people who use household electricity to mine cryptocurrencies. Earlier, Iran also invited intelligence officials to participate in finding cryptocurrency miners who are mining illegally, with Gholamali RakhshaniMehr, distribution coordinator for state-run grid operator Tavanir, saying that intelligence officials will assist in finding and confiscating unlicensed mining sites.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/stabilizing-power-supply-irans-president-announces-ban-on-crypto-mining-by-sept-22/
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