Iran Will Lift Bitcoin Mining Ban In September

Iran is planning to once again allow all the Bitcoin as well as crypto miners to operate in the country starting from the last week of September. From a report given by Iran’s Financial Tribune, Iran’s electricity-producing organization, Tavanir, made this decision in early August. Previously, the Iranian government banned Bitcoin (BTC) and cryptocurrency mining in May this year. At that time, it was reported that this decision was made to prevent all the miners from overburdening the grid in the course of the hot summer months in Iran. In fact, bitcoin miners have been blamed for ongoing power outages as well as power shortages happening in Iran.

The fact is that due to all this, Iran had to allegedly stop exporting electricity to its neighboring country Afghanistan. In April, Chinese investors relaunched Iran’s largest Bitcoin mining center after a 4-month shutdown. There were a lot of complaints that the authorities received regarding excessive electricity consumption.

Iran’s Mining Activities Causing Load On Energy Supply

However, authorities believe that illegal cryptocurrency mining activities are causing a significant load on the energy supply. This is why only licensed miners can now continue to work once the ban will lift in September. In June, the country’s Ministry of Commerce issued 30 crypto mining licenses as Iranian authorities continued to promote cryptocurrency mining activities. The same month, Tehran police confiscated more than 7,000 illegal mining rigs throughout the city. In 2020, Iran started legalizing Bitcoin mining by issuing more than 1,000 licenses in January 2020. However, the government seems interested in localizing its cryptocurrency mining sector. The parliament is even considering a bill to ban the use of cryptocurrencies from “foreign mines” for domestic payments.

Moreover, the Iranian government is expecting Bitcoin and crypto mining to become an important economic activity in the country with a forecast of $ 1 billion in revenue predicted in May. But, a summer ban could make the target unattainable, at least in 2021. Iran’s cryptocurrency acceptance policy can also significantly increase its coverage. This is because the country’s tax authorities recently requesting a legal framework for crypto trading activities.

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