Iranian Power Authority Cuts Energy Supply to License Crypto Miners

Winter beckons in many countries around the world and in a bid to prepare for the coldest months, the Iranian power authority has cut energy supply to licensed cryptocurrency miners operating in the country.

As reported by a local news channel, the move was made known by Mostafa Rajabi Mashhadi, chairman of the board and managing director of Iran Grid Management Company (Tavanir), who posited that the power cut is aimed at limiting the use of liquid fuels in power plants amid decreasing temperatures.

“The Energy Ministry has been implementing measures since last month to reduce the use of liquid fuels in power plants, including cutting licensed crypto farms’ power supply, turning off lampposts in less risky areas, and stringent supervision of consumption,” he said

As seen in the statement, the cutting of power supply to crypto mining firms in the country is not a witch hunt as Mashhadi confirmed that the broad energy consumption rate in the nation will be strictly monitored. Besides, power supplies to street lights in non-accident prone areas will likely be cut off and a host of other measures is currently being adopted as the authorities talked tough on energy conservation.

There has been a menacing energy crisis around the world, resulting in increasing oil and gas prices, particularly in the European area as demand for energy outstripped the supply, one of the after-effects of the coronavirus pandemic. The conservative approach of the Tavanir towards crypto miners, however, can be adduced to the fact that crypto-coin mining processes consume a lot of energy.

Crypto Miners the Victim of Incessant Power Outages

When it comes to crypto miners, governments around the world are always very sensitive and quick to proscribe the activities of these players based on the longstanding perception that the Proof-of-Work (PoW) mining processes consume a lot of energy.

Despite the growth in the usage of crypto in Iran, the government placed a temporary ban on mining a few months ago. In tandem, authorities from Inner Mongolia have a track record of cutting power supplying miners and confiscating mining hardware at the same time.

It is not uncommon to find many governments proscribing Bitcoin mining if the ongoing energy crisis persists, however, the good news is that Iran has a more positive disposition to crypto mining than most countries. This is likely to reinstate crypto mining processes when the conditions are more soothing.