Bitcoin Mining Returns to Iran, Government Allows Miners to Go Online Again

Iran gives the green light to Bitcoin miners to connect and operate from the country again, after the veto imposed in May due to fluctuations in its electrical system.

The miners of Bitcoin (BTC) they can now be reconnected to Iran’s national power grid. The country’s government has reported that those who have licenses to operate legally in Iran will be able to restore their services and engage in Bitcoin mining again. The news was published by Iran Internationalan information and television agency based in London (United Kingdom).

Iran estimates that at least 7% of the world’s Bitcoin mining is carried out in the country and that it consumes only approximately 300 megawatts (MW). The government reported that this activity is very lucrative in the Persian nation, thanks to its low electricity rates. However, due to fluctuations and shortage problems in Iran’s national electricity system, which began to worsen during the second quarter of this year, the country was forced to crack down on bitcoin mining and other cryptocurrencies.

Now, the ban imposed by the government of Iran has been lifted and bitcoin miners can go back online now that energy demand in Iran has decreased. At the end of August, Tavanir, Iran’s Power Generation, Distribution and Transmission company, reported that the bans on this activity would be lifted in September.

The news comes a few days after the discovery of cryptocurrency miners installed illegally in the basement of the Tehran Stock Exchange, the largest and most important stock exchange in the country. Iranian authorities discovered cryptocurrency miners on the Exchange’s premises; discovery that apparently cost Ali Sahraee the exit as general manager of the market.

It may interest you: China and Iran Enlist Crackdown on Bitcoin and Cryptocurrency Mining

Iran, Bitcoin and energy consumption

Iran’s Intelligence Ministry had reported that Iranian authorities were conducting investigations to detect and shut down illegal crypto mining farms on its territory. Then, in late May, the government imposed a blanket ban on cryptocurrency mining operations, which included illegal miners and all those with licenses to operate.

Iran pointed out that these activities required high energy consumption and that this was affecting its national electricity system, causing it to suffer from large fluctuations. Several of the cities and towns in the country of Iran, and even government buildings, suffered constant power outages. However, the government recognizes that, although cryptocurrency mining demands an important part of the country’s energy, the heat wave and high temperatures since June led to millions of air conditioning units turning on simultaneously, causing shortages in the national electricity system.

During the ban on cryptocurrency mining, the Iranian government seized thousands of hardware used for this activity.

Learn with Bit2me Academy: Mining bitcoins, what is it and how does it work?

Although Iran is one of the world’s largest oil producers, the lack of investment in the energy sector is one of the causes of the reduction in energy production in the country, he noted. Iran International. The medium indicates that a new shortage is expected during the winter. Mostafa Rajabi Mashhadi, a spokesman for Tavanir, explained to the Financial Tribune in August that Iran’s declining energy consumption by the end of the summer would create conditions for bitcoin miners to return to operations. However, if demand grows again and a new power shortage occurs, the government is likely to take further steps to ease pressure on the national power grid and prevent blackouts.

Imports with Bitcoin

In April, the Central Bank of Iran authorized the use of Bitcoin, the most important cryptocurrency in the world, for the payment of imports. The central entity pointed out that the cryptocurrency, decentralized, transparent and cross-border, would help the country to overcome the commercial blockade imposed by the United States. With the authorization of the bank, both commercial banks and registered exchange houses in the country can use Bitcoin to pay for imports of raw materials and other products.

At press time, the price of Bitcoin is trading near the $48,150 per unit, showing a recovery of 18% in its value, after falling to 40K with the new regulations of China, which prohibited

Continue reading: Central Bank of Iran authorizes the use of Bitcoin in the payment of imports