Iran: Latest Crypto Mining Clampdowns Trigger New Regulations

The past five months had Iran seizing over 9.4K cryptocurrency mining rigs, while the nation dealt with electricity outages during summer. According to Tehran Electricity Company CEO Kambiz Nazerian and Iran International, these mining equipment are scattered across the city.

Most of the number came from June’s massive haul when Iranian lawmakers seized an illegal crypto mining company and clutched 7,000 rigs.

That translated to the highest illegal machinery seizure the country has ever witnessed. Though Iran exports oil, occasional water shortages and power outages amid heat waves have triggered protests in several towns.

That comes after Iranian regulators adjusted multiple rules for the crypto mining space to ensure smooth procedures to access green energy. Certified miners will have access to cheap power produced countrywide from renewable energy sources.

Iran’s Influence on BTC hashrate Decline

The administration occasionally revealed crypto mining as the leading facet behind the demand surge. The Cambridge BTC Electricity Consumption Index shows Iran accounted for 7.5% of BTC’s hash rate in March 2021. That’s despite reports not specifying whether all seized risks were for BTC mining. The country’s hashrate had dropped to 0.2% by January.

Iran suspended all crypto mining operations in MAY (for four months), citing surging power consumption. However, markets expect the nation to lift the embargo in September. Iran later power off electricity to 118 licensed cryptocurrency mining companies in June.

That came after worries that there might not be enough electricity to satisfy the high demand during Iran’s hotter months. Moreover, the authority imposed restrictions on BTC mining. And despite authorized miners adhering to the policy, illegal mining undertakings progressed.

The Need for Regulations

Iran’s Importers Group head Alireza Managhebi recently reiterated that a steady legislative atmosphere remains a necessity to ensure success for crypto as a payment option for imports. Meanwhile, Iran’s central bank governor, Ali Salehabadi confirmed the prohibition of investing, acquiring, and trading digital tokens.

Also, the Ministry of Intelligence revealed in May about 9,219 bank accounts for545 individuals were suspended due to foreign currency and crypto undertakings. However, the nation has considered crypto transactions since 2017. Let us wait for upcoming developments.

Stay tuned for upcoming updates.