The recent crackdown on Bitcoin (BTC) and cryptocurrency mining in Iran has taken a new dimension as the government bans the activities in the summer.
According to a Bloomberg report President Hassan Rouhani announced an outright ban on Bitcoin mining in the country in a speech on state television on Wednesday.
According to the reportsThe national ban is in place until September and the government is keen to ensure access to electricity for domestic consumption during the hot summer months, which historically are the peak periods of energy demand.
As part of your speech, President Rouhani claimed that most of the crypto mining activity in Iran, up to 85%, was unlicensedIndeed Cointelegraph recently reported action taken by the authorities against miners who use electricity for domestic consumption.
Iran began nationalizing its crypto mining sector in 2020After months of dealing with illegal crypto mining activity. In January 2020 The country issued around 1,000 licenses for cryptocurrency mining in the country.
At the beginning of May, reports from the Iranian secret service surfaced about the search for illegal crypto mines on a large scale in the country.
Crypto miners have been linked to radical power outages in IranIn April, Chinese investors restarted the country’s largest bitcoin mining facility after it had been closed for four months after complaining that the farm was using a large chunk of local electricity.
In addition to power interruptions The recovery in cryptocurrency mining activity in Iran has also been linked to a deterioration in air quality in the country.
President Rouhani’s ban could affect predictions that bitcoin mining will bring the Tehran regime $ 1 billion in annual salesMany have viewed Iran’s adoption of cryptocurrency as a means of circumventing crippling economic sanctions imposed by the United States.
Iran’s crackdown on cryptocurrency mining follows reports of a broader ban on cryptocurrency mining in China. North American miners are looking for ways to achieve greener operations.