BREAKING: Iran bans cryptocurrency mining
Iranian President, Hassan Rouhani said on Wednesday that all crypto mining operations in Iran – including legal ones – must shut down until the end of the sixth Iranian calendar month on September 22.
Iranian President, Hassan Rouhani said on Wednesday that all crypto mining operations in Iran – including legal ones – must shut down until the end of the sixth Iranian calendar month on September 22.
The banning is coming after a series of blackouts across major cities, adding to the latest sign of growing unease over the digital asset’s energy usage.
“The ban on the mining of cryptocurrencies is effective immediately until September 22. Some 85% of the current mining in Iran is unlicensed,” Rouhani said.
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Bitcoin and other cryptocurrencies are created through a process known as mining, where powerful computers compete with each other to solve complex mathematical problems. The process is highly energy-intensive, often relying on electricity generated by fossil fuels, which Iran is rich in.
Iran’s economy has been hit hard since 2018 when former President Donald Trump exited Tehran’s 2015 nuclear deal with six powers and reimposed sanctions.
U.S. President Joe Biden’s administration and other global powers have been in talks with Iran to revive the deal.
Iran has accepted crypto mining in recent years, offering cheap power and requiring miners to sell their bitcoins to the central bank. Tehran allows cryptocurrencies mined in Iran to be used to pay for imports of authorized goods.
