Mining Ban Sparks Negative Reactions From Iran’s Crypto Community – The Iran Power Generation, Transmission and Distribution Company (Tavanir) has instructed cryptocurrency miners to cease operations once more till the end of this summer after they were forced to deal with power outages on many occasions last year. In the upcoming three months of hot weather, when demand will increase due to rising cooling consumption, the utility is citing potential electricity shortages.
Mostafa Rajabi Mashhadi, the company’s spokesman, was cited as saying that the action should assist lessen the excessive demand on the national grid during the peak season. The move has been criticized by stakeholders, who claim it is unjustified and will harm Iran’s cryptocurrency mining industry according to a report by the Iranian business news outlet Way2pay.
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The increased power use for mining, both legal and illegal, was partially blamed for the power shortage and the frequent blackouts, and licensed miners were told to stop operating in May.
In order to help with the energy shortages in the chilly winter months, when demand for energy increases for heating purposes, they were once more instructed to unplug their equipment after being permitted to restart operations in September.
According to the Cambridge Centre for Alternative Finance’s Bitcoin Mining Map, Iran’s share of the world’s hashrate dropped to 0.12% last year as a result of several shutdowns that affected the miners and effectively forced Iran out of the cryptocurrency mining business. Similar events have now prompted various responses from the outside world as well as warnings that Iran is falling behind its competitors.
Since the legal mining operations only make up a minor portion of the network’s load, some Iranians think that removing the cryptocurrency miners from the picture would have minimal impact on the power supply. The effectiveness of the prohibition on authorized mining is not yet clear, according to the report.
It’s also unclear why all miners around the country are meant to stop working as some crypto farms actually run in regions in the country without electricity problems. Another complaint focuses on the issues of why this should happen so fast and why just miners should be isolated from the grid.
2019 saw the industrialization of cryptocurrency mining in Iran. Numerous businesses have since requested a license from the Ministry of Industry. Mohammad Khodadadi, the Tavanir executive in charge of the mining sector, recalled that the government resolution expressly prohibits miners from purchasing power during periods of high demand. A similar clause is also present in their contracts, he added.
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Iranian cryptocurrency miners have few options now that it is clear that the country’s power network cannot meet their needs, according to Way2pay. The first is to merely wait for the authorities to end the restriction. Another option is to install diesel generators that run on alternate fuels or to rely on renewable energy sources for power generation.
