The Iranian government has announced a ban on bitcoin mining in the country until late September, according to Iran front page.
The move, announced by the country’s president, Hassan Rouhani, was necessary due to the huge burden placed on the national electricity grid by the country’s bitcoin mining activities, according to the report.
Per the report, Rouhani said, “The licensed mining of cryptocurrency does not consume much electricity and only needs about 300 megawatts. However, unauthorized miners consume a lot of electricity; they consume about 2,000 megawatts.”
Iran requires bitcoin miners to obtain permission from the government to operate, which comes with restrictions on how the resulting BTC can be used. According to the report, Rouhani has banned all bitcoin mining operations, even authorized ones, due to the power used by sanctioned and non-sanctioned miners.
The report did not explain how Iran would stop bitcoin miners already operating in unauthorized ways from conducting the operation during this latest ban.
In April, the Central Bank of Iran announced that licensed banks and money changers in the country can Using Bitcoin mined by officially approved miners to pay for imports. The move appears to have been to allow the country to operate outside of traditional financial disciplines as it faces international sanctions.
This came after October 2020 Advertising From the country’s central bank, it has amended its regulations so that bitcoin and other cryptocurrencies can be mined officially under government control, using subsidized energy, and then made available to the government to finance imports.
“I don’t think the central bank is going to touch Bitcoin in any way,” said Zia al-Sadr, a bitcoiner based in Tehran. Bitcoin Magazine last year. “The system will only provide prices and stuff and bitcoins will be transferred from the sender to the recipient directly.”
However, this latest ban now bans authorized miners from mining bitcoin.