- Iran lifted a ban on bitcoin mining in May and licensed farms could return online.
- High toll temperatures and air conditioners wanted to limit the use of electricity in the country’s power grid during the three months of summer.
- Iran’s cheap electricity attracts bitcoin miners, who set up shop there to increase profits.
Iranian bitcoin miners have been given the green light to return their rigs online, Iran International Reportedly since the beginning of summer, mining activities have been shut down due to concerns that the country’s power grid will not be able to handle extreme heat months. Only licensed farms are allowed to return online.
In May, former Iranian President Hassan Rouhani announced a ban on bitcoin mining that would last until the end of September in an effort to limit the use of energy by mining farms. At the time, Rouhani said the miners, who had state permission to run their businesses, used only megawatts (megawatts) of electricity, while unauthorized miners used 2,000 megawatts.
Summer usually increases energy demand in Iran while high temperatures persuade citizens to make excessive use of air conditioning. But now September is gone, and with it, in the summer, miners can spin their rigs and start working again. It is estimated that the country is home to about 4.6% of the world’s miners.
However, only licensed miners are allowed to return online. Unlicensed mining activities in Iran are likely to come under intense scrutiny in the future after a series of raids conducted during the four-month embargo. On September 2, Ali Sahrai, chief executive of the Tehran Stock Exchange (TSE), resigned after a bitcoin mining rig was uncovered in the basement of the TSE during one such operation.
In 2019, the Iranian government said it would regulate the mining industry, which would require permission from the Bitcoin mining industry ministry and pay for used electricity based on export rates. As of August, state agencies have reportedly issued 30 licenses for bitcoin mining farms. The province of Semnan received the most, six of them, while the second-ranked province of Alborz had four operations.