Wary of blackouts, Iran shuts down crypto-mining centers

Highlights

• Mostafa Rajabi Mashhadi, director of the state-run Iran Grid Management Co., said the latest measure is part of efforts to avoid power shortages and blackouts during winter.
  
  
• Besides the crypto ban, the government is also promoting fuel-saving measures, including turning off streetlights and regulating power consumption in offices.
  
  
• After China imposed a nationwide ban on cryptocurrency mining, most of the illegal activities shifted to neighboring shores, which in turn pressured the power grids.

Iran has ordered shutting down of cryptocurrency-mining operations this week, the second time this year, to stave off a likely electricity crunch during winter, a spokesperson of the power industry said.

As per the order, all authorized cryptocurrency mining centers will seize operation until March 6 next year.

Mostafa Rajabi Mashhadi, director of the government-run Iran Grid Management Co., said the latest measure is part of efforts to avoid power shortages and blackouts during the peak winter days.

Mashhadi said the embargo would help save up to 209 megawatts of power in the household sector.

Iran’s illegal mining activities are carried out at home and in the industrial units. However, the licensed operators consume the most electricity, accounting for over 600 megawatts, he added.

The government has recently stepped-up crackdowns on illegal crypto-mining activities.

Besides the crypto-mining ban, the government is promoting fuel-saving measures like turning off streetlights in some areas and enforcing power consumption regulations in offices.

The spokesperson said the government anticipated 60% more electricity production in the summer.

Earlier in the year, Iran had clamped a similar ban on crypto mining operations after a series of blackouts in major cities, blamed in part on energy-intensive activities.

Also Read: Why TuSimple Holdings (TSP) stock crashed today?

Source: Pixabay

Also Read: US stocks close mixed after choppy session

Chinese ban shifts illegal mining to foreign shores

After China imposed a nationwide ban on cryptocurrency mining this year, the activities moved to neighboring lands, pressuring the power grids in the respective areas.    

Iran’s National Iranian Gas Co. said the country’s daily household gas demand surged to a record 570 million cubic meters, while the production stood at 800 million cubic meters per day. This extreme demand led to a reduction in electricity supply to industries, it said in a statement last week.

Despite Iran’s efforts to stop illegal cryptocurrency mining, the activities still continue clandestinely. On Wednesday, the global cryptocurrency market was down 0.97% to US$2.24 trillion in market value, according to coinmarket.com. Bitcoin (BTC) fell 1% to US$47,545.59 at 3:45 pm ET.