Authorities in Iran have ordered licenced miners to halt all mining activities, warning that failure to do so could result in a power outage across the country during the country's cold winters. This is not the first time in Iran's history that mining activities have been halted. Similar orders were issued this summer, and mining organisations were permitted to resume operations later that month.

The coming months will bring cold temperatures, and the Iranian government anticipates an increase in electricity consumption throughout the country. This could result in shortages or blackouts, and in order to avoid such problems, the government has begun taking steps to conserve energy and reduce consumption, measures that will have a significant impact on the constantly growing crypto mining industry. Several months ago, the same situation was observed in the country.

According to Financial Tribune, an independent English-language business newspaper in Iran, the Iran Power Generation, Distribution, and Transmission company, Tavanir, has directed all cryptocurrency mining organisations to cease operations and disconnect power from their energy-intensive hardware equipment. Additionally, IRIB, a state-controlled news organisation, was informed by Tavanir's spokesperson, Mostafa Rajabi Mashhadi, that the Ministry of Energy has been making continuous efforts to reduce liquid fuel consumption in power plants since the previous month.

ADDITIONAL SECURITY MEASURES INVOLVED

According to the officials responsible for the order, reducing power supply to licensed crypto mining organisations is just one of the actions included in the larger goal. Other viable activities include strict consumption supervision and turning off lamp posts in safe areas at night. The responsible authority believes that winter blackouts may occur as a result of high electricity demand, and that these safety measures may avert such scenarios.

Tavanir's spokesperson added that while power plants in Iran have conserved some fuel for the coming months, individuals and families are urged to monitor their electricity and gas consumption.

This is not the first time mining companies have been ordered to halt operations. In May, authorities in Tehran imposed a temporary ban on crypto mining activities due to rising electricity demand and insufficient supply caused by hot weather. Crypto mining activities, along with the hot weather, were blamed for the supply shortage. As the year progressed, the falling temperatures reduced power consumption, and the ban was lifted in September, allowing organisations to resume mining.

ARGUMENTS FROM THE COMMUNITY

The local cryptocurrency community was not pleased, arguing that estimates clearly show that licensed organisations consume approximately 300 megawatts of power per day, while illegal mining activities consume approximately 3,000 megawatts.

According to reports, Bitcoin mining became legal in 2019 and a licensing regime for businesses involved in the sector was implemented. However, as a registered crypto mining farm, the entity was obligated to purchase power at increased export rates, prompting a large number of miners in Iran to remain underground and consume regular household electricity.

Many believe that Tavanir has chosen to pursue major underground mining activities in Iran based on current events. According to Iranian media reports, the state-controlled authority shut down 6,000 illegal crypto mining farms and seized more than 220,000 mining equipment. Individuals and groups responsible for illegal mining activities are now facing fines and other penalties for causing damage to the national distribution network.

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