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Iranian Government Closed Down 2 Bitcoin Mining Sites Following Electrical Surge

By Katelyn James | July 1, 2019
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The Iranian government has reportedly shut down 2 Bitcoin mining sites, locating in deserted factories, and consequently confiscated around 1000 pieces of mining equipment.

Specifically, a representative for the Energy Ministry stated, regarding a report of RadioFreeEurope, that cryptocurrency mining activities are rendering the power system in the area unstable, which makes it increasingly harder for households, as well as local companies, to gain access to electricity. The spokesperson also revealed that the Iranian authorities will not stop their efforts to pursue crypto mining operations, which have rapidly multiplied in these years.

As stated by the minister, there has been a 7% surge in electricity consumption, and that the power to mine only one coin can power 24 residential households for 12 months.

Crypto mining business can acquire electricity for a reduced cost in Iran – $0.006 per kilowatt-hour – since it is financially supported by the government. Areatak – a crypto startup located in Iran’s capital Tehran – is searching for potential foreign partners, to set up mining sites in Iran nationwide, despite the illegal nature of the act. Chinese firms have also looked to establish their business here, reinforcing their country’s reputation as a crypto mining hub.

The Iranian authorities plan to determine a new electricity price range, particularly for crypto mining businesses, as suggested by the Electricity Ministry. The representative also revealed that several crypto mining firms have established shops in mosques and schools, in an attempt to utilize the free electricity of these institutions.

Due to the economy in a shrinking state, and the Iranian Rial is losing its value, a large number of Iranians have turned to cryptocurrencies to support them.

“Mining these currencies inside Iran will not only prevent money from leaving the country, it will also create currency under the difficult conditions of sanctions,” Mohammad Shargi, head of Iran’s Bitcoin Society, claimed.

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