Briefly –
- Iran had banned cryptocurrency mining, tackling the increased electricity outages.
- Meanwhile, TSE Directors and other Iranians continued mining Bitcoin despite the prohibition.
- As Iran resumes mining activities, specialists warn about violating sanctions risks.
The Iranian regulators have allowed certified cryptocurrency mining firms to proceed with their activities after the 3-month suspension by Hassan Rouhani, a former president. A source revealed these updates early on Friday, highlighting that the changes came after Ebrahim Raisi became president on 3 August and the decreased summer heat. Reports suggest that Rouhani declared a ban on cryptocurrency mining on 26 May this year following energy outages.
Most sources indicated that Rouhani mentioned summer heat as the cause of the outages. Keep in mind that the nation recorded temperatures of up to 49 degrees during some days. Rouhani stated that crypto mining uses more than 2GW of electricity each day. He also declared that unlicensed mining operations account for 85% of the activities.
Though the temporary ban on crypto mining aimed to minimize stress resulting from Iran’s power grid, some citizens proceeded with illegal undertakings. With that, lawmakers seized around 7,000 mining machines in June. Teheran’s Stock Exchange Director Ali Sahraee had to step down after regulators unveiled mining rigs inside the TSE building.
Iran accounts for around 4.5 – 7% of the cryptocurrency mining output in the globe. The Iranian government nets nearly $1 billion in revenue per year, and some reports suggest that the nation has used mining to evade US sanctions. Though the central bank in Iran prohibits the trading of digital assets mined abroad, market players access them via the black market.
Crypto Fans Should Avoid Sanctions Violation
However, the option may be absent as the US jurisdiction appears increasingly amplifying crypto scrutiny. As the US prohibits its citizens from using sanctioned countries and firms, traders and exchanges might be wary, avoiding sanctions violation. Such offenses might draw enforcement actions.
Keep in mind that China has been fighting cryptocurrencies for a long, citing energy concerns. That forced miners to quit the country, seeking homage in nations with friendly crypto environments. With that, nations supporting crypto mining witnessed increased revenues.