Iran to Shut Down Crypto Mining Farms Amid Record High Power Demand – Iran’s authorities plan to unplug approved crypto mining facilities as the country’s electricity consumption reaches new highs. The mining farms will be disconnected from the power grid on Wednesday, according to the Islamic Republic’s Ministry of Energy.
From the beginning of Tir, the next month in the Iranian calendar, or Wednesday, June 22, authorized crypto mining companies in Iran will be required to disconnect their power-hungry coin minting equipment. The decision was announced by Mostafa Rajabi Mashhadi, a spokeswoman for the Ministry of Energy, according to the Tehran Times.
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The regulation, according to the government official, applies to the 118 licensed mining farms that are now operating in the Islamic Republic. The temporary restrictions would be implemented after the country’s electricity consumption peaked at 62,500 megawatts (MW) during peak hours last week.
According to Mashhadi, power consumption is expected to exceed 63,000 MW this week, which concludes on Friday according to the Iranian calendar. These figures, according to a spokesman from the energy ministry, are considerable, and they will result in a limited electrical supply across the country.
In 2019, the Iranian government declared cryptocurrency mining to be an industrial activity. Since then, scores of businesses have applied for a license from the Ministry of Industry and begun extracting digital currencies, taking advantage of Iran’s low-cost energy.
Apart from the licensed mining activities, a rising number of Iranians are setting up mining installations to mint digital coins using subsidized household electricity, putting additional strain on the Iranian power generation business. Draughts produced by lower-than-expected rainfall and greater demand in the hot weather have posed major challenges for the latter. Iran was reported to have raided around 7,000 illegal crypto farms in May, according to a report.
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Increased power demand for mining was partly blamed for the country’s electricity shortages and numerous blackouts last summer, and even licensed miners were ordered to shut down. They were allowed to reopen in September, but were again asked to shut down due to a developing power shortage during the cold winter months.