Iran Stops Authorized Crypto Mining to Save Energy for Winter

With energy consumption increasing in Iran during winter, the local energy department has decided to suspend operations of authorized cryptocurrency mining centers.

Mostafa Rajabi Mashhadi, Chairman of the Board and Managing Director of Iran Power Grid Management Company (Tavanir), announced that Iran will once again shut down crypto mining centers to reduce liquid fuel consumption at power plants amid the drop in temperatures.

According to Mashhadi, the Islamic Republic of Iran Radio (IRIB) reported on December 25, the Iranian authorities took this action last month to reduce energy consumption.

"Since last month, the Department of Energy has been implementing measures to reduce the use of liquid fuels by power plants, including cutting power supplies to authorized crypto farms, closing light poles in lower-risk areas, and strictly regulating consumption," he said. "

The executive emphasized the importance of saving energy in Iran, calling on citizens to also reduce electricity and gas consumption as much as possible. According to local reports, 70% of the fuel consumed in Iran is used to heat buildings. According to reports, new energy-saving measures are expected to reduce energy consumption by at least 40%.

While imposing restrictions on authorized crypto mining operators, the Iranian government is also working hard to crack down on illegal crypto miners. In late November, the local energy department announced that they had seized a total of 222,000 mining rigs used for illegal cryptocurrency mining since the industry regulations were established.

Iran is one of the largest crypto mining countries in the world, accounting for an estimated 4.5% to 7% of global Bitcoin hashrate. The country had previously imposed a temporary blanket ban on crypto mining during the summer, citing historical peaks in electricity demand due to high temperatures. The ban was subsequently lifted in September as Iran's power grid became more stable.

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