Irani authorities ordered license miners to stop their work during winter due to electricity shortages. After similar restrictions in the summer, licensed companies were allowed back to mine again in September.
Crypto Mining Farms Shut down in Iran during Winter
The Iranian government has begun to take steps to curb consumption and reduce the electricity shortage, as it expects energy demand to rise with the low temperature. Just like earlier this year, the measures will affect the country’s growing crypto mining industry.
According to Financial Tribune, Tavanir, Iran’s Power Generation, Distribution and Transmission Company, recently ordered authorized cryptocurrency mining centres to unplug power hungry hardware.
Iran’s Ministry of Energy has been trying to reduce the use of liquid fuels in power plants since last month, Tavanir’s spokesman Mostafa Rajabi Mashhadi told the state-run broadcaster IRIB. The official explained that cutting off power to crypto farms licensed is one part of a series of measures, which also includes the removal of lamps from safer locations at night and supervision of consumption.
This utility hopes these precautions will reduce the possibility of blackouts occurring in winter, when there’s more electricity. Mashhadi stated that Iranian power stations have been able save fuel in the past few months. However, he also cautioned that electricity users should watch their consumption.
Iranian Crypto Miners Require to Handle New Restrictions
It isn’t the first year that licensed Iranian miners were asked to close down their machines. Tehran authorities announced in May that crypto mining would be temporarily banned due to rising electricity demand and the insufficient supply because of hot and dry conditions. Also, the shortages could be attributed to digital currencies being created by enterprises.
In September Tavanir removed the restrictions, citing a decrease in power consumption at the beginning of the summer as temperatures drop. Crypto community criticized Tavanir’s suspension of authorized mining. According to estimates, licensed entities consume around 300MW of electricity while illegal miners use as much as 3,000MW each day.
In 2019, the Islamic Republic approved bitcoin mining. The government also established a licensing system for companies involved in this industry. Many Iranian miners prefer to stay under radar, and to use subsidised household electricity, even though registered crypto farms must purchase the power they require at higher export rates.
Tavanir began to pursue underground mining sites this year. In November, media reported that Tavanir had confiscated more than 220,000 mining equipment and closed close to 6,000 illegal cryptocurrency farms. The operators of the illegal crypto farms are now facing penalties and fines, as well as damages to the national distribution network.
Are you positive Iran can manage its long-term power shortage and provide stable electricity for the crypto mining industry? Comment below.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. This is not an invitation to purchase or sell directly, nor a suggestion or endorsement of products, services or companies. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.