The extreme summer heat that has hit Iran this summer has subsided. Cryptomining has been re-authorized and the government can no longer blame miners for power outages in the country.
The original ban was introduced in the spring of this year, mainly due to concerns and instability of the country’s electricity grid.
Iran is back in the game!
The Iranian government will once again allow licensed crypto miners to continue their work following a ban imposed by the former President Hassan Rouhani on May 26, 2021.
The 84 million country in the Middle East experienced significant power outages in the summer, which former President Hassan Rouhani attributed to extreme heat. In some places, the temperature was able to rise to more than 50 degrees Celsius!
Due to power outages and lack of water, the president decided to ban the extraction of cryptocurrencies during these high temperatures so that citizens could use their air conditioning equipment. Of course, there were also doubts about how much energy cryptocurrencies in the country actually use.
Can cryptocurrencies help Iran?
It is estimated that 5 to 7% of world cryptocurrency extraction takes place in this country. Iran boasts one of cheapest electricity prices in the world. The area is also rich in minerals and has a sufficient source of energy.
There are claims to suggest that the government sees BTC mining as a way to avoid US sanctions. Iran and the local economy are currently under US embargo, which is certainly being negatively affected. At the current level of mining in Iran, revenues are estimated about $ 1 billion.
Cryptomining is said to have taken place throughout the summer, despite the ban. Ali Sahraee, director of Tehran stock exchange (TSE), resigned after suspicions that cryptocurrency mining continued during the ban under his leadership. The TSE management initially denied this, but eventually the Executive Deputy Director Beheshti-Sarsht admitted it.