Iran bans mining! What has changed in the country?
More recently, we talked about how mining works in Iran. Then we described how local users bypass numerous sanctions and communicate with the outside world with the help of cryptocurrency mining. We said that mining for Iranians is a way to keep their funds in a stable currency. However, today’s news has radically changed the situation in the state. According to the latest reports from Iran, the mining of digital assets is completely prohibited on the territory of the country. We will tell you what is the reason for the ban, how long the restriction will last and what to expect from the government in the near future. Let’s start.
What is the reason for the prohibitions?
First, we note that the restriction on the use of equipment for the extraction of cryptocurrencies has not been introduced forever. The ban will last until September 1, 2021. At the moment, the government has ordered to shut down all installations and stop processing digital transactions. The decree applies to both single miners and large licensed companies. So the country is completely out of the game. But what led to such drastic measures? After all, Iran gladly issued licenses, certified miners and supported the Blockchain in every possible way. All the fault of the problem with electricity. In our last articles, we have repeatedly touched upon the problem of the cost of mining digital funds. To receive BTC, ETH and any other currency, you need equipment. The equipment consumes a lot of electricity that Iran is unable to produce.
The figures have risen dramatically in recent years, according to a government statement. Because of this, the country faced an electricity shortage. The country simply does not have the ability to produce as much electricity as local miners consume. According to the president’s statement, even authorized and sanctioned mining requires a minimum of 300 watts, which the state is unable to provide. Note that unregistered currency miners spend about 2000 watts. This is a catastrophic amount. What will the state take and how should local miners be? More on this in our next section.
How will Iran react to current events?
The situation is really difficult. Due to the warm attitude towards Blockchain, the president and the government actually gave the green light to everyone who wanted to mine cryptocurrency. Because of this, the number of miners has skyrocketed. The state has already carried out several operations to find and punish illegal users of high-performance equipment. However, apparently, the events did not bring the desired result. Therefore, mining is completely prohibited until September 1.
The dry weather also affects, because of which the operation of power plants cannot show their maximum potential. Over the coming summer, representatives of the relevant structures are planning to carry out an energy reform. There are plans to change several legislative acts, including those that affect the extraction of digital assets. It is quite possible that funds will be allocated from the budget for the construction of additional installations and an increase in the rate of electricity generation.
Thus, we are again convinced that the problem of the distribution of mining is much more serious than it seems. That is why we urge you to be attentive to the electricity you consume and to politely follow all the news from the cryptoindustry. In this situation, it is important to stay up to date with the latest developments in the world of Blockchain and advanced technologies. We publish only high-quality, interesting material about everything that happens in the industry. Thanks for attention. Good luck!