Connect with us


Iran bans cryptocurrency mining after cities suffer blackout



Iran has become the latest country to join the league of countries that have banned the mining of cryptocurrencies after a series of blackouts across major cities.

The ban, which was announced on State TV on Wednesday, becomes effective immediately until September 22.

This development followed a growing unease over cryptos energy usage, which has reported led to power shortages and blackout across major cities.

The restriction also follows a similar regional ban placed on Bitcoin by China.

Iranian officials are blaming a surge in mining for blackouts in their cities.

The Iranian government has been cracking down on the 85 per cent of mining that is unlicensed.

Bloomberg reported that subsidised power prices allow miners to run the complex computers that compete to solve mathematical problems and receive Bitcoin as a reward.

The University of Cambridge estimates Iran was home to 3.4 per cent of Bitcoin mining in the first four months of 2020, putting it in sixth place globally.

Iran also has 50 licensed mining centers, which are spread across 14 to 31 provinces and consume a combined 209 megawatts of electricity, grid operator Tavanir said in a statement on Wednesday.