The Iranian authorities once again asked the licensed miners to suspend their activities due to power shortages in the cold winter. After a period of similar restrictions last summer, approved companies were allowed to resume mining in September.

Iran’s crypto mining farm will be closed in winter

The country’s energy demand is expected to increase with the low temperature in the coming months, and the Iranian government is now taking measures to limit consumption and avoid power shortages. Just like earlier this year, these measures will affect the country’s growing crypto mining industry.

TabanilAccording to the English-language business daily “Financial Tribune”, Iran’s power generation, distribution and transmission company recently instructed authorized cryptocurrency mining centers to unplug its power-consuming hardware.

Tavanir spokesperson Mostafa Rajabi Mashhadi told state broadcaster IRIB that since last month, Iran’s Ministry of Energy has been working to reduce the use of liquid fuel in power plants. The official detailed that cutting off electricity to licensed encrypted farms is part of a series of actions, which also includes shutting down lamp posts in safer areas at night and strictly monitoring consumption.

The utility company believes that these measures will help prevent potential blackouts during winter when electricity demand is high. Mashhadi added that Iran’s power plants have managed to save some fuel in the next few months, but he also emphasized that consumers should be cautious about their use of natural gas and electricity.

Iranian crypto miners are forced to deal with restrictions again

This is not the first Iranian miner to be licensed this year ask Turn off their equipment. In May, Tehran authorities Announce Due to the hot and dry weather leading to increasing demand for electricity and insufficient supply, cryptocurrency mining is temporarily banned. Companies that mint digital currencies have also been blamed on shortages.

Tabanil lift The restriction in late September was due to the drop in power consumption when the temperature drops at the end of summer. The local crypto community criticized the suspension of authorized mining because estimates indicate that licensed entities consume only about 300 megawatts (MW), while illegal miners burn up to 3,000 MW per day.

The Islamic Republic legalized Bitcoin mining in 2019 when the government introduced a licensing system for companies participating in the industry. However, because registered crypto farms need to purchase the required electricity at a higher export rate, many Iranian miners are more willing to keep a low profile and use subsidized household electricity.

Tavanir has been looking for underground mining facilities this year. Media reports in November showed that the state-owned enterprise confiscated more than 220,000 mining machines and Turn off There are nearly 6,000 illegal encryption farms across the country. Their operators face fines and other penalties for damage to the national distribution network.

In the long run, do you think Iran can solve its power shortage problem and ensure a stable power supply for its crypto mining industry? Tell us in the comments section below.

Lubomir Tasef

Lubomir Tassev is a tech-savvy journalist from Eastern Europe. He likes Hitchens’ famous quote: “Being a writer is my nature, not what I do.” In addition to encryption, blockchain and financial technology, international politics and economics Are the other two sources of inspiration.