Iran recently reintroduced its seasonal crypto mining ban once more and this has resulted in backlash from the crypto community in the country. The power distribution company in Iran ordered crypto miners in the country to shut down their operations because of electricity shortages that tend to occur during the summer season.
Problems for Iran’s crypto community
Last year, there were several occasions when crypto miners in Iran had to deal with power supply interruptions and their operations suffered. Tavanir, which is the Distribution, Transmission, and Power Generation company in Iran, has told crypto miners to halt their operations in the country once more, till the end of the summer season.
According to the utility, there are going to be shortages of electricity in the next three months because of hot weather, as demand will go up with cooling devices being used. A spokesman for the company, Mostafa Rajabi Mashhadi, said that taking this measure would cut back the national grid’s heavy load in the peak summer season.
But, a report disclosed that the move has prompted objections from stakeholders, who believe that doing so is going to hurt the crypto mining industry in Iran, just as it had done last year.
Last year’s issues
The frequent blackouts and power deficit that had occurred last year in Iran had been partially blamed on the increased power consumption for mining operations, both illegal and legal ones. Licensed miners were ordered to shut down their operations the previous May and had been allowed to resume from September.
They had been asked to unplug once more in the cold winter months when demand for energy had gone up because of heating needs. The miners had taken a hard hit due to these multiple shutdowns and statistics had shown that Iran’s contribution was only 0.12% to the global hash rate. Since the events appear to be happening again, they have sparked several reactions from the local crypto community, as competitors are now moving ahead.
Limited options for Iranians
According to some Iranians, removing crypto mining operations would not have a big impact on the power supply because there are only a handful of legal mining operations in the country. Thus, it is unclear if the ban on authorized crypto mining will be effective or not.
Moreover, it is also unclear as to why all mining operations in Iran have to shut down because some of them are based in areas where there are no electricity shortages. Another question is why crypto miners have to suffer and why it is so sudden.
There are only limited options at the disposal of crypto miners in Iran when it has become apparent that the power network in the country cannot fulfill their needs any longer. They can either choose to wait until the ban is lifted by the authorities, or they can turn to alternative fuels like using renewable energy resources or installing diesel generators. The last option is to go underground and do illegal crypto mining.