Iran temporarily bans cryptocurrency mining after blackouts

FILE PHOTO: A handout picture provided by the Iranian presidency on April 28, 2021, shows Iran’s President Hassan Rouhani attending a cabinet meeting in the capital Tehran. – Iran’s foreign minister said he favors a “smart adjustment” between the military and diplomatic spheres, in his first public reaction to leaked audio of him bemoaning the military’s influence. Mohammad Javad Zarif also said he regretted that the leak had triggered “domestic infighting,” amid a furious reaction from conservative figures and media outlets. (Photo by – / Iranian Presidency / AFP)

TEHRAN, Iran (AFP) — Iran’s President Hassan Rouhani on Wednesday announced a four-month ban on all cryptocurrency mining, a day after his energy minister apologized for unplanned power cuts in major cities.

Iranian officials have regularly blamed unlicensed cryptocurrency miners for using vast amounts of electricity.

“Cryptocurrency activities and mining cryptocurrencies must be stopped” until September 22, Rouhani said in televised remarks.

Power cuts in the peak summer months are not uncommon in Iran, but Tehran and several other major cities were hit by unplanned blackouts late last week, sparking complaints from consumers and businesses.

Iran started rolling blackouts from Sunday to reduce the pressure on the national grid.

Rouhani said “illegal” miners who usually have access to subsidized electricity consume between six and seven times more power than those with permits.

Energy Minister Reza Ardakanian apologized to Iranians on Tuesday for “shortcomings and pressures” over the surprise blackouts.

He said the national grid was overburdened due to a drought impacting hydropower generation and unexpectedly warm weather causing a surge in demand for air conditioning.

National electricity company spokesman Mostafa Rajabi Mashhadi said on Saturday that licensed cryptocurrency-mining farms had already voluntarily shut down operations to ease the burden.

Profitably creating, or mining, bitcoin, and other cryptocurrencies requires masses of computers dedicated to solving deliberately complicated equations — an endeavor that globally consumes more electricity than entire nations.

According to consultant and expert on cryptocurrencies Michel Rauchs, about five to 10 percent of world bitcoin mining can be traced to Iran.

© Agence France-Presse

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