Cryptocurrency mining in Iran is a contributing factor to the country’s energy problems. Iran was among the first countries in the world to legalize the mining of bitcoin and other cryptocurrencies in September 2018, but requires miners to have a license. There could be power outages this winter, the state power company said. The problem between miners and state officials arises regularly, to mine in Iran you need a license that allows you to use large amounts of electricity.
Illegal mining of cryptocurrencies will account for at least “10% of electricity outages this winter,” the power company said in a statement released by the state news agency Irna. “This illegal mining was responsible for 20% of the blackouts during the summer,” the agency added.
According to estimates by the Iranian authorities released in May, illegal miners, who often have access to subsidized electricity, consume six to seven times more energy than those with permits. Iran announced a temporary ban on all cryptocurrency mining activities the day after the Energy Minister apologized for unplanned power outages in major cities. The ban was later lifted in mid-September.
Some Iranian officials have suggested that cryptocurrencies could be used to overcome problems related to international sanctions imposed on the country. The Parliament is studying the quantification of the size of the cryptocurrency market in Iran and the best way to use this technology. About 19,500 Bitcoins are mined each year in Iran, compared to 324,000 worldwide, while about 700 Bitcoins are traded every day in the country, a report of the phenomenon says. But police raids on illegal mining farms are frequent.
