Iran Faces Outages as Crypto Mining Allegedly Strains Power Grid
Iran’s capital, Tehran, and neighboring provinces faced major power outages throughout October and November. Cryptocurrency mining has emerged as a significant contributor to the power crisis, despite various reasons cited by officials.
Since mining costs in Iran are estimated to be among the lowest in the world, many miners take advantage of electricity that is heavily subsidized by the Iranian government.
iranian Electricity subsidies fuel Bitcoin mining boom
Iran’s high electricity subsidies make it a global Bitcoin mining hotspots Since 2022. The price of electricity in Iran is only US$0.002 per kilowatt hour, significantly lower than the lowest level in the world. This low cost attracts miners because electricity accounts for the majority of Bitcoin mining fees.
At the time of writing this article, The cost of mining one Bitcoin The price in Iran is $1,324, significantly lower than the $100,000 in the United States or $300,000 in Ireland.
In August, Tavanir, CEO of Iran’s National Electricity Corporation, stressed Unauthorized mining operations on the region’s power grid. The electricity consumption of 230,000 unlicensed devices is equivalent to the total electricity demand of Markazi Province, a major manufacturing center.
In response, Tehran launched a bounty to incentivize citizens to report any unlicensed cryptocurrency mining equipment.
“Opportunistic individuals have been taking advantage of subsidized electricity and public networks to mine cryptocurrency without proper authorization. This unauthorized mining has led to an abnormal surge in electricity consumption, leading to significant disruptions and problems with the national grid.” explain Tavanir CEO Mostafa Rajabi Mashhadi speaks to local news.
Public frustration is growing as Iranians share insights into previously discovered mines on social media. Many of these activities often take place in government-assisted areas such as mosques or schools. These facilities often receive discounted or free electricity.
sanctions Taking Tehran to cryptocurrencies
Last week, the Central Bank of Iran (CBI) officially recognized A new regulatory framework for cryptocurrencies. The policy requires cryptocurrency brokers and custodians to obtain licenses and ensure compliance with anti-money laundering (AML) laws, counter-terrorism financing (CTF) rules and tax obligations.
Iran has played a broader role in the crypto market in recent years, with geopolitical tensions often spilling over into the industry. Earlier this year, The impact of the Israel-Iran conflict is significant Regarding the market price of Bitcoin. Tensions in April nearly led to $1 billion liquidation from the cryptocurrency market. However, prices recovered fairly quickly.
In addition, Iran also Embracing Cryptocurrency as a tool to alleviate economic challenges Circumvent U.S. Sanctions Restricting access to global financial networks. The government has allowed regulated cryptocurrency mining to generate revenue and is exploring the use of digital currencies International trade settlement.
Although officials have not directly linked Bitcoin mining to the recent outages, the public has. Iran’s dual approach to exploring cryptocurrencies while cracking down on unauthorized mining reflects the industry’s complex role in the country’s economy.
Disclaimer
follow trust project BeInCrypto is committed to fair and transparent reporting. This news article is designed to provide accurate and timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on the content of this article. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
