Thursday, December 7, 2023

Iran’s cryptocurrency community reacts negatively to the mining ban.

The local digital asset community of Iran is criticizing the seasonal ban reintroduced in the country. It has been very hot this summer resulting in power outages. As a result the power distribution company of Iran advised miners to suspend activities for some time.

Exclusion from International Coin Minting

Something similar had occurred last year as well. Tavanir, the power generation, transmission and distribution company of Iran, had told miners to stop mining. This year as well, Tavanir is not letting miners resume activity until the end of summer.

In the next 3 months, the heat will increase further. This would trigger demand for more power for cooling. Due to the accompanying power outages, miners should halt their activities.

According to Mostafa Rajabi Mashhadi, Tavanir’s spokesperson, a ban on mining will relieve a lot of load off the national grid. This means more power for other essential activities. However, miners and crypto investors oppose the move. They think it will harm Iran’s digital asset market.

A Year of Power cuts

Last year the crypto mining activities were blamed for frequent power cuts in the country. As a result, even legal miners had to shut all mining activities last May.

In September, miners were allowed to resume work but then winter arrived. Miners were again blamed for using too much power for the purpose of mining, causing a national power deficit. This time, Iran needed extra power to heat things up in the cold winter months.

Due to this, Iran’s crypto hashrate in the world fell to a meager 0.12 per cent. This ousted Iran from the international crypto mining community.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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