Several Bitcoin mining firms are under hurdles because of the new temporary issued order against mining firms.
Iran is a tech-friendly region in the world, where crypto has better room for the citizens but due to environmental challenges, Iran is not able to provide better & favorable situations for the crypto mining industry. High temperature & high electricity consumption is a very big issue for Iran.
Bloomberg reported that the Iranian government agency decided to cut off electricity supply for huge numbers of legally licensed crypto mining companies.
According to the report, during an interview with Iranian state TV, Mostafa Rajabi Mashhadi, spokesman for the country’s power industry, said that a total of 118 crypto mining companies will face issues because electricity supply will be halted, in order to complete the high electricity demand of Iranian population. This issued order will come into effect on 22 June.
Last week, the Electricity demand of Iran surpassed by more than 63,000 watts. Notably, it was not the first time, where Iranian authorities have been forced to prohibit the crypto mining firms but also happened many times in the past few years.
The relationship of Iran with Bitcoin mining has been fraught. In 2020, Iran issued a license for 1,000 miners to operate crypto mining operations legally. With that step of Iran, many other companies showed significant inclination toward this country, hoping to capitalize on the country’s cheap power. According to some reports, Iran has also used Bitcoin mining to lessen the impact of sanctions leveled upon the country.
Illegal Bitcoin miners in Iran
Around 2 years ago, Iran happily opened its hands to the crypto mining companies but with that huge numbers of illegal crypto mining activities surged.
According to reports, many illegal crypto mining operations are going on in almost every house in Iran. As a part of the action, Iran agencies seized 7,000 crypto mining units in June 2021. It has also made moves to shut down illegal cryptocurrency mining farms, disconnecting them from the national power grid and prosecuting the miners in question.