Winter Comes, Iran Stops Crypto Mining Operations

Electricity for a crypto mine is diverted to heat homes in Iran's winter. (photo; pixabay)

JAKARTA - Amid Iran's rising energy consumption during winter, local energy authorities have decided to stop operating the country's official cryptocurrency mining center.

Mostafa Rajabi Mashhadi, Chairman of the Board and Managing Director of Iran Grid Management Company (Tavanir), announced that Iran is closing crypto mining centers again to reduce liquid fuel consumption at power plants amid falling temperatures.

Mashhadi said that the Iranian authorities took this action to reduce energy consumption last month, The Islamic Republic of Iran Broadcasting reported this as quoted by Cointelegraph, on Saturday, December 25.

"The Ministry of Energy has implemented measures since last month to reduce the use of liquid fuels in power generation, including cutting off the electricity supply of licensed crypto farms, turning off light poles in less risky areas, and strict consumption monitoring", he said.

The executive stressed the importance of saving energy in the country, calling on citizens to reduce electricity and gas consumption as much as possible as well. According to local reports, 70% of the fuel consumed in Iran is used to heat buildings. The new energy-saving measures are reportedly expected to cut energy consumption by at least 40%.

While imposing restrictions on authorized crypto mining operators, the Iranian government has also been working to combat illegal crypto miners in its country. In late November, local energy authorities announced that they had seized a total of 222,000 mining devices used for illegal mining of cryptocurrencies since industry regulations were enacted.

Iran is one of the largest crypto mining countries in the world, accounting for around 4.5%-7% of the global Bitcoin hash rate. The country previously imposed a temporary ban on crypto mining in the summer, citing historically peak periods of power demand due to hot temperatures. The ban was later lifted in September as Iran's power grid became more stable.