Iran Halts Power to Licensed Crypto Miners Amid Seasonal Demand
Iran is cutting electricity to all 118 licensed crypto mining operations starting June 22 to manage seasonal power strain. The move highlights the ongoing tension between leveraging crypto to bypass sanctions and managing domestic energy resources.
Iran is severing electricity to all 118 government-authorized cryptocurrency mining operators starting June 22 to alleviate seasonal spikes in power demand. This decision highlights the country's complex relationship with digital currencies, as it balances the potential of Bitcoin to bypass sweeping U.S. financial sanctions against the immediate need to stabilize its domestic power grid.
Despite officially recognizing the crypto mining industry in 2019 and requiring licensed operators to sell mined Bitcoin to the central bank, Iran repeatedly shuts down these facilities during periods of high electricity consumption. The country's share of global Bitcoin mining drops significantly as a result, falling from an estimated 4.5% in mid-2021 to a mere 0.12% by January 2022.
This cycle of restriction mirrors the situation in China, where a severe government crackdown initially caused the global crypto hash rate to plummet before underground mining operations quietly revived the network. The resilience of miners in both regions shows how operators utilize off-grid electricity and small-scale setups to evade authorities and continue mining despite strict nationwide bans.