Iran has banned the mining of cryptocurrencies for four months in the wake of major power outages in large metropolitan areas.
“The ban on the mining of cryptocurrencies is effective immediately until September 22 – Some 85% of the current mining in Iran is unlicensed,” said President Hassan Rouhani in a televised speech on Wednesday.
Mining operations are famous for their massive power demands, especially with Bitcoin, and have been largely criticized by Iranian citizens just a month from their presidential election.
Blockchain analytics suggest that 4.5% of the global Bitcoin mining operation can be found within Iran. The money earned by these mining operations is largely used to circumvent sanctions placed on the country by the U.S. during the Trump administration.
Bitcoin and other cryptos are allowed to be traded to central Iranian banks in exchange for authorized imports and goods, and government entities offered cheap power to mining operations in order to help incentivize groups towards crypto services.
President Joe Biden and his administration have been in talks with Iran to lift sanctions and revive trade agreements, in hopes that this will relieve some of the pressure on the Iranian economy.
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