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Iran forbids crypto mining activities and cuts off electricity

Redwan Eid | Jun. 27, 2019
Iran forbids crypto mining activities and cuts off electricity

June 27, 2019 | AtoZ Markets - The Iranian government has just announced its decision to forbid crypto mining activities in the country.

The decision will deprive those crypto mining enthusiasts from electricity, until the new prices in discussion at the moment are approved, as per the local media in the country.

Mostafa Rajabi Mashhadi, an official from the Iranian Ministry of Energy unveiled that the decision comes against the background of the recently noticeable increase in power consumption, as the latter spiked to a 7% increase during a one-month period as the statistics carried our this month revealed, the thing that was described as “unusual”.

This, in return, affected the power grid in the country negatively, causing instability sometimes.

The ministry attributes the spike in power consumption to the cryptocurrency mining activities that are increasing in the country, the thing that rang the alarm bells in that context and urged for taking appropriate measures.

As an initial remedy the Iranian government has reached so far, the latter is considering tracking those who mine cryptocurrency in the country and deprive them of electricity, until the new pricing labels for such kind of resources-hog activities.

Iran was preparing to launch its cryptocurrency

In retrospect, the Iranian deputy minister of energy alluded mid-June that new billing labels would be made for such kind of investments, where the official source said that power crypto miners consume should be calculated  based on “real prices” or the rates that were tailored for power exports, as he described.

Iran, which benefits much from mining cryptocurrencies, was reported mid last year to have been preparing for launching its own cryptocurrency in the short run.

“Iran’s government-backed cryptocurrency project has reportedly finished its final stages of development. According to Iran’s National Cyberspace center, the country’s cryptocurrency project has been mostly led by the President of Iran, Hassan Rouhani.”, reported AtoZ Markets last August.

In November last year, AtoZ Market updated that the national cryptocurrency of Iran had entered the pilot mode without announcing its name yet at the time. However, “the process of ensuring internal and interbank settlement has already started. The internal cryptocurrency will be used primarily for settlements with local commercial banks and in a direct transfer.  After the Central Bank of Iran (CBI) approves the national crypto application, it will be tested by Fintech organizations.” AtoZ Markets reported.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.