Iran issues temporary ban on crypto mining to account for winter power consumption

Iran hopes to cut down energy consumption by at least 40% this winter

Iranian energy authorities have announced that the country will be halting cryptocurrency mining in authorised centres to account for increasing energy consumption during winters. Iran is one of the core crypto mining countries in the world which makes up an estimated 4.5%–7% of the global Bitcoin hash rate. 

Mostafa Rajabi Mashhadi, the chairman of the board and managing director of Tavanir, Iran’s Grid Management Company stated the decision to shut down crypto mining centres for the second time this year was taken last month.

The chairman explained that the government is looking to reduce liquid fuel consumption in every way possible in order to support the power consumption amid decreasing temperatures in various parts of the country.  

Iran had previously issued a temporary ban on crypto mining earlier this year citing peak levels of power demand due to hot temperatures. The ban was lifted in September after the grid stabilised.

According to local news agency The Islamic Republic of Iran Broadcasting, Mashhadi explained that:

“The Energy Ministry has been implementing measures since last month to reduce the use of liquid fuels in power plants, including cutting licensed crypto farms’ power supply, turning off lampposts in less risky areas and stringent supervision of consumption.”

While such a ban can be implemented on authorised crypto mining centres, the combat against illegal mining will continue in Iran through the winter months. Local energy authorities announced last month that over 200000 mining devices have been seized for illicit mining since regulations were established in the country.

Local reports revealed that over 70% of the fuel consumed in Iran is used to heat buildings during winter. The administration aims to use new energy-saving measures including the crypto mining ban to cut down the energy consumption of the country by at least 40%.

The executive further explained the need to save energy in the country and called upon individuals and industries to reduce electricity and gas consumption as much as possible.