Billion-dollar crypto mining industry gets the green light in Iran after 3-month ban

Iranian bitcoin miners have been given permission to reactivate their equipment, Iran International News reported.

Mining operations have been halted since the beginning of the summer because to concerns that the country’s electricity supply would be unable to withstand the severe heat.

Only licensed farms are permitted to re-enter the market. As a result of electricity shortages caused by higher demand in other industries and dry weather, Iran implemented a series of limitations on cryptocurrency mining in May.

Electricity hungry

Hassan Rouhani, Iran’s former president, maintained at the time that miners with a governmental permit used only 30 megawatts of power, but unlicensed miners used 2,000 megawatts.

On certain days, Iran’s air temperature soared above 50 degrees Celsius. The Islamic republic is expected to temporarily restrict cryptocurrency mining again this winter, Iran International said, owing to “a lack of electricity and investment in the sector.”

In Iran, high temperatures cause citizens to use their air conditioning non-stop during the summer months, which drives up energy demand.

Miners can immediately reactivate their rigs and resume operations now that September has passed, and with it, the summer.

Based on estimates, the country is home to nearly 5% of the world’s miners. Iran accounts for 4% of total Bitcoin mining, data analysts at Elliptic said.

The convenience of crypto

Cryptocurrencies allow the country to buy imported commodities while avoiding international sanctions.

The Iranian Ministry of Industry (IMI) previously granted 30 licenses to crypto mining companies. Iran’s police shut down 1,620 unlawful mining operations in January, consuming 250 MW of electricity.

Following the numerous raids authorities carried out during the four-month prohibition, illegal mining activities are likely to be closely scrutinized in the future in Iran.

The chief executive officer of the Tehran Stock Exchange (TSE), Ali Sahraee, reportedly quit on September 29 after bitcoin mining machines were discovered in the TSE’s basement during a raid.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/billion-dollar-crypto-mining-industry-gets-the-green-light-in-iran-after-3-month-ban/