New Path Opening for Crypto Miners in Iran

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a year ago - 2 minutes read


Iran has become a hotspot for cryptocurrency mining and electricity generation. This is due to the government's decision that renewable sources can be used by power plants, which would allow them to sell their excess energy in licensed miner markets across Asia - including China where demand exceeds supply.

The country needs all available resources now more than ever because they cannot afford blackouts during winter months when weather conditions make it difficult if not impossible to produce clean heating fuels like natural gas or coal with increased efficiency through fossil fuel combustion processes alone.

It was reported that the Iranian Ministry of Energy has adopted new rules to allow companies to leverage electricity production from renewable sources, such as solar panels or wind turbines, to now supply coin minting enterprises operating within legal boundaries.

With the help of renewable energy plants, legal mining firms can enter into agreements and rates that are negotiable. Mohammad Khodadadi is head of a department in charge for these types of deals with power producers who have agreed on terms to meet Iranian needs.

Tavanir, Iran's state-owned utility that recently ordered authorized miners to unplug their equipment in order to prevent blackouts from occurring due heightened energy demands.

The Ministry of Energy has taken measures to reduce the use of liquid fuels for generation this winter. They are trying to avoid electricity shortages by shutting down licensed crypto farms, among other things!

In 2019, Iran legalized bitcoin mining and introduced a licensing regime for entities operating in the industry. Registered crypto farms are allowed to buy electricity at higher rates from local utilities as well as avoid mandatory registration with authorities if they purchase their power abroad instead (in countries such as China). This provides an incentive not only economically but also politically since it allows these farmers more freedom than ever before while still making money off of exports!

In May, then-President Rouhani announced a temporary ban on crypto mining and blamed it for the electricity shortages in Iran.

The hot weather caused by droughts had led him to make this decision amidst growing demand for power from within as well as without of their borders due largely thanks to cryptocurrencies like Bitcoin that are becoming more popular among Iranians who want access but not ownership or control over them.

Iran's government has shut down illegal mining operations throughout the year. In November, it was reported that 220 thousand crypto machines had been confiscated and almost 6000 farms shut down in different regions.

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