Iranian Government Cuts Off Energy Supply To Crypto Miners

Iran has made a surprising move to regulate power across the country by cutting supply to certain areas. Somehow, crypto miners are intertwined in the whole scenario, as the Iran Grid Management Company restricted supply to all the licensed miners. This move suggests that the country may be turning its back against cryptocurrencies and their uses.

The motive behind the decision is understandable considering that crypto mining is energy-intensive and taking a toll on the country’s power grid. Managing Director of Iran Grid Management Company Rajabi Mashhadi, revealed that energy conservation is top priority for the country.

Decision Will Not Affect Miners Alone

The decision to cut power supply to crypto miners has been in motion for months by concerned authorities. However, the authorities had to wait until now to implement the decision after factoring in everything. Interestingly, the decision won’t affect crypto miners only.

According to reports, Tanavir, another name for the grid management company, also cut off supply to areas with a low accident rate. These areas will have the power supply to the street lights cut out as well in a bid to save energy

Mashhadi, who is also the chairman of the grid management board, disclosed that the ministry has been enacting measures to cut down on liquid fuels in power plants for the past month. He said that cutting out supply to licensed mining facilities and less risky environments was necessary to curtail consumption. 

Miners In The Mix Of Another Mining Saga

Throughout 2021, crypto miners have dominated the headlines severally. In March, Inner Mongolia cut out major supply to miners in the region due to the epileptic nature of power. This move was initiated to conserve energy too. 

In June, miners were sent packing from China in another FUD for some reasons best known to the country. This resulted in the decline of hash rates for some months and crypto enthusiasts thought it signaled the end of mining.

These miners were forced to seek refuge in countries in Europe and North America, notably Russia, Kazakhstan, and the United States. Fortunately for the miners, these countries welcomed them with open arms and mining hash rates started increasing again.

While China enacted anti-crypto laws, Iran legalized crypto mining in 2019. Speaking of the latter, experts are basking on this as a factor that won’t cause any alarm to the crypto world. 

In early this year, Iran suspended mining activities, a move that shook miners in the region. The country later lifted off the suspension, much to the delight of the crypto community. Experts are optimistic that energy will be restored to the miners once the upcoming winter period is over.

 

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