Iran has recently become a fertile ground for Bitcoin mining. The West Asian country has been trying to regulate crypto mining since the start of the year. Now, it has given miners the freedom to mine based on the price of electricity, according to reports.
A 7% spike in power consumption led to a crackdown on crypto miners in the country. Iran’s Ministry of Energy commented on the unusual nature of the energy spike which was unlike that of the past made the country’s power grid unstable.
According to the official, the surge was caused by the growing number of crypto mining activity in the country, adding that they will take necessary measures to prevent energy issues.
Following the power surge, Iranian authorities moved to impose a moratorium on mining pending when new prices for electricity will be finalized. The Chairman of the Central Bank of Iran commented on the electricity pricing stating that, “Mining of international digital currencies should be done based on the price of electricity for export.”
The Iran Blockchain Association, a nonprofit community promoting blockchain technologies held discussions with Chinese miners ahead of the moratorium on mining. It is no secret that the country’s capital Tehran has been recognized as a mining industry in Iran. This, therefore, lead to Chinese miners to seek official crypto mining channels in free zones.
However, the deputy energy Minister of Iran has urged that electricity prices for the cryptocurrency miners should be calculated according to real electrical prices or the same rates should be established for power exports.
While Iran is being bullish on Crypto mining, it is bearish on crypto trading as the Country’s financial watchdog has warned that citizens refrain from trading Bitcoin and other digital currencies. Numerous pyramid schemes have reared their ugly head in Iran and this has lead to the government warning its citizens that trading cryptocurrencies are illegal within the state.