Iran’s relationship with cryptocurrencies seemed to be moving forward in a positive way. Last year the Asian country issued licenses for crypto miners and formulated a bill to regulate digital currencies; now, it will restrict the energy of cryptocurrencies, this as a response to the energy crisis they are going through.
According to a report by Bloomberg, there will be 118 legal crypto mining centers that will be banned from energy from next June 22, before seasonal spikes in energy demand increase, said Mostafa Rajabi Mashhadi, spokesman for Iran’s energy industry. , in an interview with state television. Last year the country had already been in a similar problem. The government ordered two closures of crypto mining centers to mitigate the pressure on its electrical infrastructure; at that time the country had reached a record level in electricity demand.
While the measure is established to try to alleviate the tension in the country’s energy supply, its response to other countries is expected. Several countries, such as Iran, have taken advantage of the option of implementing cryptocurrencies to avoid international sanctions. Iran is sanctioned by the United States for what prevents the country from accessing the international financial system.
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In 2019, the Asian country accepted the possibility and began to grant licenses to miners to carry out their cryptomines. But to carry out this project requires a lot of energy, so the government ordered higher electricity rates for miners; furthermore, the mined bitcoins must be sold to the central bank of Iran.
Before the bans, Iran boasted great fame in the crypto mining sector. Blockchain analytics firm Eliptic estimated that as of May of last year, at least 4.5% of all Bitcoin mining came from Iran. However, in January this year, the percentage plummeted to 0.12% according to the Cambridge Center for Alternative Finance (CCAF).