Bitcoin News: The Iranian government has placed an emergency embargo on Bitcoin and crypto mining to protect electricity consumption during the summer months.
Pressure on Bitcoin (BTC) and crypto mining in Iran reached a new height as the government banned mining activities during the summer.
According to Bloomberg’s report, President Hassan Rouhani announced a comprehensive ban on Bitcoin mining in the country at one address on state television on Wednesday.
It was reported that the nationwide ban will continue until September and the government has implemented this practice to meet domestic consumption during the hot summer months, when electricity consumption is historically the most intense.
President Rouhani claimed that most of the crypto mining activity in Iran – up to 85% – is unlicensed. As a matter of fact, Cointelegraph recently reported a restriction on miners using electricity for household consumption by the authorities.
After months of dealing with illegal crypto mining activities, Iran started the process of nationalizing the crypto mining industry in 2020. In January 2020, about 1,000 licenses for cryptocurrency mining were issued in the country.
Iran after China
In early May, reports emerged that Iranian intelligence was conducting intelligence work for illegal large-scale crypto mining operations in the country.
Crypto miners are seen among the reasons for massive cuts in Iran. In April, Chinese investors restarted the country’s largest Bitcoin mining facility after it was shut down for four months amid complaints that the mining industry was consuming a large portion of the local electricity supply.
Along with cuts in electricity supply, the increase in crypto mining activity in Iran is also linked to the country’s worsening air quality.
President Rouhani’s ban could deal a blow to Bitcoin mining, which generates an estimated $1 billion annually for the regime in Tehran. Iran’s move to adopt cryptocurrencies has been seen by many as a way to circumvent the economic sanctions imposed by the United States.
Iran’s crackdown on crypto mining came just after reports of a broader cryptocurrency mining ban in China. Meanwhile, miners in North America are reportedly looking for ways to find more environmentally friendly practices.