On 22nd May, Iran’s President, Hassan Rouhani announced to confirm the reports about Bitcoin mining for the coming 4 months. This decision for banning bitcoin mining comes after massive blackouts were observed in some of the major cities in Iran.
Iran’s government is concerned about the high levels of energy consumption for mining around the city. President Hassan Rouhani, himself made the official announcement on the television regarding their concerns and has put a four monthly ban on bitcoin mining.
As per the recent report in Bloomberg, the ban is supposed to be lifted on 22nd September 2021. President Hassan Rouhani further expressed his concerns regarding having non-licensed crypto miners in the country. As per him, a major number of crypto miners do not have proper licenses to continue with the mining.
The restriction on bitcoin mining is imposed to cut short on the massive blackouts observed in and around some of the major cities. Several factors have led to the blackouts, and President Hassan Rouhani has also listed crypto mining as one of such factor which is causing blackouts. This has been deemed as a “serious security issue”. With the onset of heat and drought and the electricity demand, the Iran government is worried about electricity shortage.
As per a recent report by Blockchain, Iranian minors could be generating 1$ billion worth of coins, around 4.5% of Bitcoin’s hash rate. And some of the registered mining farms have voluntarily stopped the work to help the country with the electricity shortage.