Iran Officials Blame Bitcoin Miners for Blackouts and Pollution
Iran’s authorities are blaming Bitcoin miners for widespread blackouts and pollution across the country.
In August 2019, amid comprehensive US sanctions, Iran eased restrictions on cryptocurrencies as it was shut out of traditional financial markets. Bitcoin “legally” mined could be used for financing imports.
Authorized miners could use a limited amount of Iran’s subsidized energy. But cryptocurrency farms, with banks of high-powered computers, began draining supplies. The problem was compounded by thousands of “illegal” operations.
With the price of Bitcoin rising sharply, the Government has been accused of involvement in the illegal schemes. Mahmoud Vaezi, the head of President Hassan Rouhani’s office, responded that there has been “pressure to regulate [the market] in some way”.