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Iran Closes Thousands of Bitcoin Mining Farms Before Lifting Ban

Tavanir, Iran’s power company, continues to shut down unauthorized Bitcoin and cryptocurrency mining farm operations, according to reports attributed to local sources.

Financial Tribune indicates that the authorities have so far closed more than 5,300 mining farms throughout the year, in addition to having confiscated 216,758 hardware parts. This despite Tavanir’s own announcements to lift mining restrictions on September 22, as we reported in CriptoNoticias.

These pieces could include not only mining equipment, such as ASICs or GPU cards, but also hard drives, servers, and any other hardware unit used in this activity.

So far, CriptoNoticias has not had access to Tavanir’s official report, which the local news agency ISNA would have originally reported, according to the Financial Tribune. However, these actions suggest that the Iranian authorities continue to maintain restrictive policies against Bitcoin mining operations that are not duly registered with the competent bodies.

Iranian police officer seizes ASIC equipment for mining Bitcoin and other cryptocurrencies. Source: Financial Tribune.

The main objective of the closure of these mining farms is to avoid the electrical blackouts that they would cause by operating in an unauthorized manner. The authorities representing Tavanir affirmed that the electricity consumption of these farms is equivalent to that of 800,000 Iranian households, for about 2 million people.

However, the Ministry of Industries, Mining and Commerce of Iran would have dismissed this figure as exaggerated, according to another Financial Tribune report on August 29.

Originally, the ban on cryptocurrency mining in Iran had been declared in May by Iran’s Ministry of Industries, Mining and Commerce, leading to some raids during June. At the end of June, the government again authorized 30 mining farms to continue their operations, but once again prohibited the activity.

Iran ranked 5th in geographic concentration of the Bitcoin mining hash rate as of April 2021.

Since at least 2018, Iran has been a destination of interest for Bitcoin and other cryptocurrency miners, especially from China. That placed it, by April 2021, before the bans in China, in the fourth place of geographical concentration of the hash rate, although it is unknown how the seizures will have affected the country’s computing power.

Mining bans in China were followed by restrictions in Iran, leading to the largest migration of miners to other Asian regions such as Kazakhstan.

With the variability of Iranian policies towards cryptocurrency mining, it is difficult for miners to reconsider this country as their base of operations. This is because each unforeseen suspension of the mining activity costs millions to the companies dedicated to this activity. Iran must demonstrate greater continuity in its policies so that, combined with low electricity costs, it is conceived as an attractive territory for bitcoin mining.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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