Iran Resumed Cryptocurrency Mining Operations

Iran’s government has lifted the three-month ban on cryptocurrency mining.

The Iranian government has lifted a 3-month ban on cryptocurrency mining. The country had been a hub for mining cryptocurrencies in the previous months due to cold weather and cheap electricity. However, in May 2021, the Iranian government banned cryptocurrency mining with a three-month deadline for those still engaged in it.

Recently, it was now revealed that the Iranian government had made a U-turn on its stance and is now permitting cryptocurrency mining after all. Iranian authorities have given a green signal to cryptocurrency mining activities in Iran after seeing their neighboring countries being very successful with it.

The country of Iran is believed to be responsible for somewhere between 4.5 and 7 percent of all bitcoin mining globally. Additionally, this is because Iran possesses very significant deposits of fossil resources, particularly natural gas. The result is that the price of energy in this nation is quite cheap.

There were cyclical significant power outages in Iran this summer, the reason of which was ascribed to high heat. There were days when the temperature soared over 120 degrees Fahrenheit (almost 49 degrees Celsius)!

In an attempt to find a partial solution to the issue of power shortages, the previous president decided to prohibit bitcoin mining temporarily. It was about giving people access to air conditioning, among other things. After the heatwave passed, President Ebrahim Ra’isi, the newly elected head of state, declared that his predecessor’s prohibition would be lifted.

Also Read: Elon Musk Urged The US Government To Steer Clear Of Regulating Cryptocurrencies

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