Iran is ready to End Nationwide Crypto Mining Ban

The government of Iran has shown its willingness to end the ban, which it had imposed upon crypto mining, in the month of September this year. Because of the ban, the illegal mining farms as well as the legally authorized miners have had to suspend their mining activities.

Four months ago, Iran has had to decide to impose a ban on legal and illegal crypto mining in the country. The decision was made to control the power shortage which had become a major issue for the citizens. Most affected people were from the areas where there were crypto mining facilities. Because miners require a huge amount of electricity for the mining process, therefore, they were consuming too much electricity.

However, the mining was legal and the miners were paying extra charges over and above the normal tariff rate, the situation was under control. But the situation deteriorated when some wrongdoers took the matter into their own hands by establishing illegal crypto mining farms. On one hand, there were legally operating miners and on the other hand, were illegal miners. Both were consuming too much electricity which then turned into a nationwide electricity crisis. Unaware of the illegal crypto farms, the Government started to look at the problem of electricity shortage. The Government then noticed that there were illegal crypto miners operating in the area.

At that time, the Government of Iran decided to temporarily put a complete ban on crypto mining activities. Though the legal miners appealed to the authorities, however, the Government did not pay heed to their requests. Instead, a ban for a period of six months was imposed, which could be extended further if the need arose, said the Government.

Now recently, it has been reported in the Iranian media that the Government is exploring the possibility of lifting the ban. According to the local press, the Government is likely to end the ban in the coming month of September. The news was later also re-affirmed by the Ministry of Industries, Iran, which said that the Government is planning to lift the ban on 22nd September. The announcement of lifting the ban was made by Tavanir, which is the national power company of Iran.

The announcement revealed that the Government is expecting that the electricity load will be reduced in the coming summer season. There will be less demand and less power consumption in the coming months, said Tavanir. The company also said that during the summer season, Tavanir will make efforts to invite foreign and local investors to establish further power plants. Preference would be given to those, who will propose to install plants that will be eco-friendly, told Tavanir.

The announcement has been hugely appreciated by the Iranian crypto mining industry who said that it is a welcome step.

Though mining was and still is a legal activity, yet the Government of Iran had imposed a ban on it in May 2021. The Government also blamed miners for the imposition of the ban.