Iranian President Hassan Rouhani has announced that the mining of cryptocurrencies in Iran is prohibited with immediate effect. The ban, which will last until September 22, is imposed as many cities in the country face major power outages.
- Iran has banned the mining of cryptocurrencies with immediate effect, President Hassan Rouhani said in a televised address at a cabinet meeting on Wednesday. He was quoted by the media as saying:
The ban on mining cryptocurrencies applies immediately until September 22nd.
- Many cities in Iran are facing major power outages, and the government has attributed power outages to cryptocurrency mining, drought, and rising demand for electricity during the summer. Bitcoin News recently reported that Iran will shut down licensed crypto miners during peak electricity consumption.
- Blockchain analytics firm Elliptic estimates that around 4.5% of all bitcoin mining takes place in Iran. The company said the mining revenue “enabled the country to bypass trade embargoes and earn hundreds of millions of dollars in cryptoassets that can be used to buy imports and circumvent sanctions.”
- Iran requires licensed crypto miners to sell their bitcoins directly to the central bank. Cryptocurrencies that are legally mined in the country can be used to pay for the import of authorized goods. In April, Iran authorized banks and currency exchanges to use cryptocurrencies to pay for imports.
- Government officials say much of the energy used comes from bitcoin mining by illegal miners who work without licenses. In January, Iranian police seized 45,000 bitcoin mining machines that were using illegally subsidized electricity. President Hassan Rouhani said on Wednesday:
About 85% of current mining in Iran is unlicensed.
What do you think of Iran banning cryptocurrency mining this summer? Let us know in the comments below.
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