Iran has given the green light to Bitcoin miners to go online and operate from the country again, following a ban imposed in May due to fluctuations in its electrical system.
The miners of Bitcoin (BTC) can now connect to Iran's national power grid again. The country's government has announced that those who have licenses to operate legally in Iran will be able to restore their services and engage in Bitcoin mining again. The news was published by Iran International, a news agency and television station based in London, UK.
Iran estimates that at least 7% of the world's Bitcoin mining takes place in the country and it consumes only about 300 megawatts (MW). The government reported that this activity is very lucrative in the Persian nation, thanks to its low electricity rates. However, due to fluctuations and shortages in Iran's national electricity system, which began to accentuate during the second quarter of this year, the country was forced to take strong measures against bitcoin mining and other cryptocurrencies, .
Now, the ban imposed by the Iranian government has been lifted and bitcoin miners can now go online again as energy demand in Iran has decreased. In late August, Tavanir, Iran's Power Generation, Distribution and Transmission Company, reported that bans on this activity would be lifted in September.
The news comes just days after cryptocurrency miners were discovered illegally installed in the basement of the Tehran Stock Exchange, the largest and most important stock exchange in the country. Iranian authorities discovered cryptocurrency miners on the premises of the Exchange, a discovery that apparently cost Ali Sahraee his job as general manager of the exchange.
It may interest you: China and Iran prepare crackdowns on Bitcoin and cryptocurrency mining
Iran, Bitcoin and energy consumption
Iran’s Ministry of Intelligence had reported that Iranian authorities were conducting investigations to detect and shut down illegal crypto mining farms on its territory. Then, in late May, the government imposed a blanket ban on cryptocurrency mining operations, which included illegal miners and all those with licenses to operate.
Iran said these activities required high energy consumption and that this was affecting its national electricity system, causing it to suffer large fluctuations. Several of Iran's cities and towns, and even government buildings, suffered constant power outages. However, the government acknowledges that although cryptocurrency mining demands a significant part of the country's energy, the heat wave and high temperatures since June have led to millions of air conditioning units being switched on simultaneously, causing shortages in the national electricity system.
During the ban on cryptocurrency mining, the Iranian government seized thousands of pieces of hardware used for this activity.
Learn with Bit2me Academy: Mining bitcoins: what is it and how does it work?
Although Iran is one of the world's largest oil producers, lack of investment in the energy sector is one of the reasons for the reduction in energy production in the country, he said. Iran International. The outlet notes that new shortages are expected during the winter. Tavanir spokesman Mostafa Rajabi Mashhadi told the Financial Tribune in August that Iran’s declining power consumption by the end of summer would create conditions for bitcoin miners to resume operations. However, if demand grows again and new power shortages occur, the government is likely to take further measures to ease pressure on the national power grid and prevent blackouts.
Imports with Bitcoin
In April, Iran’s Central Bank authorized the use of Bitcoin, the world’s largest cryptocurrency, for payment of imports. The central bank said the decentralized, transparent and cross-border cryptocurrency would help the country overcome the trade embargo imposed by the United States. With the bank’s authorization, both commercial banks and registered exchange houses in the country can use Bitcoin for payment of imports of raw materials and other products.
At the time of this edition, the price of Bitcoin is trading near the $48.150 per unit, showing an 18% recovery in its value, after falling to 40K with the new regulations of China, which prohibited
Continue reading: Central Bank of Iran authorizes use of Bitcoin in the payment of imports
