Bad News For Crypto Mining Companies In Iran, Power Supply Will Be Stopped

Iran cuts off state power supply to crypto miners. (Cryptonewsz)

JAKARTA – The Iranian government plans to stop the electricity supply for crypto miners in the country. The information was conveyed by the Iranian Ministry of Energy recently.

According to local media, the Tehran Times, the decision to cut off energy supplies will be implemented on Wednesday. The move was taken to stop electricity access to illegal crypto mining.

The electricity of the official cryptocurrency mining unit will be cut off from the beginning of the next Iranian calendar month Tir (Wednesday, June 22) until the end of the restrictions. The Iranian government has granted 1,000 crypto mining permits as of January 2022. To date, about 118 legal crypto mining uses the state's energy supply.

The government recorded electricity consumption of 62,500 megawatts (MW) in the previous week. Power consumption is expected to cross the 63,000 MW limit, which will limit the energy supply in Iran.

Efforts to Stop Illegal Crypto Mining

Illegal crypto miners in Iran have consumed 600 megawatts of the country's electricity supply. The government had banned crypto mining to save the country's electricity supply. The ban goes into effect in March 2022 and is claimed to free up power supplies of up to 209 megawatts.

Actually Iran has been dealing with illegal crypto miners for a long time. Since the government allowed crypto mining activities in 2019, Iran granted permits for 1,000 domestic mines by 2020. At the same time, illegal crypto miners have started to enter Iran and use the country's electricity supply.

A year later the Iranian government warned the illegal miners to pay heavy fines for their actions. Crypto mining has presented a number of problems for Iran's electrical energy supply.