Iran tightens restrictions on cryptocurrency mining

Iranian authorities warned local authorised miners of a temporary power shutdown. Tehran Times reports.

According to the publication, there are 118 cryptocurrency mining companies operating in the country at the time of writing. They are to be disconnected from the grid from next month according to the Iranian calendar, which begins on 22 June.

Iran’s Energy Ministry spokesman Mostafa Rajabi Mashhadi said the restrictions were dictated by rising consumption — last week a record 62,500 MW was recorded. Authorities expect the figure to reach 63,000 MW in the near term.

This is not the first time Iran has imposed restrictions on miners. In late May 2021, President Hassan Rouhani announced a temporary ban on cryptocurrency mining due to an electricity shortage. Licensed enterprises were allowed to resume in autumn.

At the end of the year, the state energy holding company Tavanir took similar measures due to higher consumption in winter.

In April 2022, authorities increased penalties for illegal cryptocurrency mining using subsidised electricity and introduced prison sentences for repeat offences.

Analysts at Elliptic said that cryptocurrency allows Iran to circumvent sanctions and buy imported goods.

For details on how the country’s economy operates under prolonged restrictions, read ForkLog’s exclusive feature:

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