Iran recently announced a four-month ban on cryptocurrency production after unplanned power cuts in major cities.<\/p>\n\n\n\n
With an estimated 4.5% of all bitcoin mining taking place in Iran, Iranian President Hassan Rouhani told a cabinet meeting that, while the main cause of the blackouts was a drought affecting hydroelectric power generation, cryptocurrency mining, 85% of which are unlicensed, was withdrawing more than 2 GW from the power grid every day.<\/p>\n\n\n\n
The Iranian authorities officially recognized cryptocurrency mining in 2019 and later introduced a cryptocurrency licensing system that ensures that the required miners identify themselves, pay a higher tariff for electricity, and sell their mined bitcoins to the Central Bank of Iran.<\/p>\n\n\n\n
But, President Rouhani said that unlicensed facilities consumed between six and seven times more electricity, leading to a ban on all cryptocurrency activities until 22 September.<\/p>\n\n\n\n
Bitcoin mining has helped Iran evade sanctions and earn hundreds of millions of dollars in crypto-assets after the country’s banks were cut off from the global financial system and oil exports were hampered by sanctions.<\/p>\n\n\n