Iran Grid Management decides to shut down crypto mining firms

bitcoin mining in iran

The chairman of Grid Management Iran took a bitter decision against the crypto mining firms, to save energy. 

Iran is also one of the hubs of crypto mining firms. However recent years showed that Iran is now no more friendly for crypto mining firms because mining firms are facing cuts of electricity supply. Here it is not all about the fault of Iranian electricity power supplies or any rules, but it is all about the lack of electricity generation which is needed for domestic purposes.

Because of the high electricity consumption, the chairman of the board and managing director of Iran Grid Management Company (Tavanir), Mostafa Rajabi Mashhadi, said the company decided to cut down the electrical energy for all authorized crypto mining firms, to save the liquid fuels. 

The Islamic Republic of Iran Broadcasting (IRIB) published this news on 25 December. According to this report, Mashhadi made this decision around a month ago to save energy for the upcoming months. 

“The Energy Ministry has been implementing measures since last month to reduce the use of liquid fuels in power plants, including cutting licensed crypto farms’ power supply, turning off lampposts in less risky areas, and stringent supervision of consumption,” Mashhadi said 

The executive also urged the Iranian citizens to slow down the consumption of energy, to save electricity for a better future. 

Reportedly, amid the ongoing winter season, 70% of the houses in Iran are using electricity for room/house heating purposes. But new measures by the electricity company may help to reduce the consumption by around 40%.

With such restrictions on the authorized crypto mining firms, the Iranian government is also trying to catch all the illegal crypto miners of the country. Energy company announced in late November that they seized around 222,000 mining rigs, which we’re planning to deploy these machines in the mining of crypto assets illegally. 

Read also: Former Chancellor of UK described crypto as a gambling game