The recently reintroduced seasonal ban on cryptocurrency mining has provoked backlash from the local crypto community. This week, the country’s power distribution company ordered miners to suspend activities citing electricity shortages during the hot summer months.
Some Iranians believe that removing the cryptocurrency miners from the equation would have little effect on the power supply as the legal mining facilities account for a relatively small share of the network’s load. The report notes that it’s unclear how effective the ban on authorized mining will eventually turn out to be.
It’s also unclear why all miners across the country are supposed to cease activities as in reality, some crypto farms operate in parts of the country that do not experience electricity shortages. Another objection comes down to the questions why only miners should be disconnected from the grid and why this should happen so suddenly.
Iran legalized crypto mining as an industrial activity in 2019. Since then, dozens of companies have applied for a license from the Ministry of Industry. Tavanir’s executive responsible for the mining sector, Mohammad Khodadadi, reminded that the government resolution explicitly states that miners are not allowed to buy electricity during peak times of consumption. Their contracts contain a similar clause as well, he added.
According to Way2pay, Iranian crypto miners have limited options now when it’s obvious that the country’s power network can no longer meet their needs. The first is to simply wait until the authorities lift the ban. Another one is to use alternative fuels by installing diesel generators or to rely on generation from renewable energy sources. The last resort is to go underground and continue to mint digital coins illegally, on their own risk.
Do you expect Iran to solve its problems with electricity shortages and ensure regular power supply for its crypto mining industry? Share your thoughts on the subject in the comments section below.