Iran bans cryptocurrency mining for four months

Thursday 27 May 2021 13:03 CET | News

Iran has announced a four-month ban on the energy-consuming mining of cryptocurrencies such as Bitcoin after cities suffered unplanned blackouts.

President Hassan Rouhani told a cabinet meeting the main cause of the blackouts was a drought that had affected hydro-electric power generation. But he said cryptocurrency mining, 85% of which is unlicensed, was draining more than 2GW from the grid each day.

According to analytics company Elliptic, the activity allows the country to bypass sanctions and earn hundreds of millions of dollars in crypto assets that can be used to purchase imports. Iran's banks were cut off from the global financial system and its oil exports plummeted, depriving it of a source of hard currency and revenue, as a result of sanctions reinstated by the US in 2018 when then President Donald Trump abandoned a landmark nuclear deal.

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Keywords: cryptocurrency, mining, Bitcoin, banks
Categories: DeFi & Crypto & Web3
Countries: Iran (Islamic Republic of)
This article is part of category

DeFi & Crypto & Web3