Unprecedented surge in demand for electricity has led to frequent blackouts in country in recent weeks Syed Zafar Mehdi | 14.01.2021
TEHRAN
Amid severe power outages across Iran in recent weeks, a major cryptocurrency mining plant jointly operated by an Iranian-Chinese investment firm in the country’s southeast has been temporarily shut down.
Iran’s state-owned electricity firm Tanavir made the announcement on Wednesday after a viral video showing thousands of bitcoin machines operating at the facility in Rafsanjan city of Kerman province.
According to state media, the bitcoin mining farm in Rafsanjan had alone been using 175 megawatt-hour (MWh) of electricity from the total 600 MWh allotted to all cryptocurrency factories in the country.
Facing smog and blackouts, Iran blames illegal Bitcoin mining
President Hassan Rouhani has ordered a crackdown on unauthorised cryptocurrency mining
18 January 2021 • 6:54pm
Iran has ordered the closure of illegal Bitcoin operations, as energy shortages have contributed to air pollution
Credit: ATTA KENARE /AFP
Iranian authorities have blamed a novel culprit for rolling blackouts and heavy smog in major cities this winter: illegal cryptocurrency mining.
In recent weeks air pollution in the capital Tehran and other metropolitan areas in Iran has reached hazardous levels, while residents report widespread power cuts.
Winter cold has increased demand for domestic heating, creating a shortage of natural-gas And forcing power plants to burn low-grade fuel oil, contributing to the pollution, the semi-official Iranian Students’ News Agency reported.
Outcry Over Power Outages, Smog Forces Iran To Act Against Bitcoin Miners
January 17, 2021 08:54 GMT
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Iranian authorities are blaming power outages and worsening air pollution in cities across the country on the energy drain caused by bitcoin mining operations.
The cryptocurrency farms are a huge energy drain because they use banks of high-powered computers to try to unlock complex numerical puzzles related to international financial transactions.
When successful, bitcoin miners create units of so-called digital coins that can be traded globally without the scrutiny and restrictions of traditional financial markets.
Circumventing Sanctions
In August 2019, facing strangling U.S. economic sanctions, Iran eased its restrictions on cryptocurrencies in an attempt to break economic isolation by circumventing the traditional financial markets Tehran has been blocked from using.