Iran has announced plans to cut off cryptocurrency miners from electricity supply from Wednesday, June 22.
This measure, according to the spokesman for Iran’s power industry, Mostafa Rajabi Mashhadi is due to the spike in electricity demand in the country.
According to Mashhadi, all 118 legal crypto mining centers in Iran would be cut off from electricity supply to meet up with the growing demand for power supply.
In Iran, an estimated 12 million Iranians hold one coin or another, hence the clamor for less regulation by FinTech firms in the country.
A Blockchain analytics firm, Elliptic had estimated that about 4.5 percent of the world’s Bitcoin mining takes place in Iran.
Despite this, the relationship between crypto miners and the Iranian government remains dynamic. Earlier, crypto miners were asked to register to be regulated, but these recent actions indicate an increasing clampdown on the activities of the miners.
Cryptocurrency mining was made legal in the country in 2019.
This will be the second ban on the mining of cryptocurrency in the country.
Iran had placed a four-month ban on the energy-consuming mining of crypto after cities suffered unplanned outages due to massive crypto-mining operations held in the country.
In April 2021, the government authorized domestic banks and money exchangers to use locally and licensed mined cryptocurrencies to pay for imports to the sanctioned nation.
Earlier in January, Iran’s central bank and government officials had given the green light for the adoption of a mechanism using digital coins in the field of foreign trade.
By this, the Central Bank of Iran (CBI) and the Ministry of Industries, Mining, and Trade had approved for Iranian companies to pay their partners with cryptocurrencies.
This was targeted at increasing import and export opportunities in the country