The authorities in Iran have revised some of the rules for the crypto mining industry in order to facilitate its access to green energy. Licensed miners will now be able to purchase electricity produced from renewable sources from across the country at low prices.
Cryptocurrency miners in Iran are allowed to source green energy from all over the country
The Iranian Ministry of Energy has changed some cryptocurrency mining regulations to facilitate access to renewable energy for entities authorized to mint digital currencies in the Islamic Republic.
Bargqnews revealed a recent ordinance that exempts miners from the obligation to use on-site power generation capabilities and allows them to purchase electricity from renewable energy sources from across the country and through the national grid.
Mohammad Khodadadi, an official at the Iranian Power Generation, Transmission and Distribution Company (Tavaner), pointed out that so far, mining companies can only sign contracts with renewable energy plants located in the same province.
Quoting the English-language daily Financial Tribune, the report also revealed that Iranian companies that mine legally using clean energy will not be charged the normal transmission fees for using the country’s electricity grid.
The positive changes to the mining sector come after Iranian authorities announced in December a decision to allow power plants producing green energy to supply licensed miners. This change was initiated by the Ministry of Energy in Tehran.
Iran experienced power shortages during hot, dry summers and cold winter months and partly blamed energy-intensive Bitcoin mining for the shortfall. In 2021, registered crypto farms were ordered to shut down their power-starved equipment on more than one occasion.
This year, Tavanir asked miners again to suspend their activities until the end of the summer, citing the expected electricity shortages amid increased demand due to increased cooling consumption. The restrictions sparked negative reactions from the crypto community in the country.
The state-owned utilities have also vowed to crack down on unlicensed crypto miners, increasing fines for illegal mining activities by 400%. According to official data released in May, the Iranian government has identified and shut down nearly 7,000 illegal cryptocurrency minting facilities.
These improvised crypto farms are often powered by subsidized household electricity and have become a popular source of income for many Iranians. During several raids so far, Tavanir’s employees have confiscated hundreds of thousands of mining hardware.
Do you think Iran will allow crypto miners to resume operations before the end of the summer? Share your predictions in the comments section below.
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