In 2020, the government of Iran happily and readily issued licenses for Iranian crypto mining farms. With this open pass and friendly environment, the number of mining farms increased on a rapid scale. The smaller number of operations also kept expanding as the crypto markets took root on a global scale and spring out like a blooming business. However, this rapid speed soon started to create issues for the locals.
Both retail and commercial consumers started to complain about the shortage of energy resources due to the uncontrollable crypto mines. The last nail was hammered in the coffin when the power grid had to start load shedding to prevent overheating and complete breakdown. According to electricity providers, for Tehran and other major provinces Khorasan Razavi and Alboraz, it has become necessary to take two hours breaks.
The Electricity Crisis of Iran has become a Barrier for Crypto Miners
The crypto mining farm owners are facing a new challenge to keep going on with their operations. The country has an impressive economy and industrial presence. Nevertheless, cryptocurrency mining requires a huge amount of electricity consumption. As time passes, this consumption requires more hardware installations and larger amounts of energy. Chinese financial union has also decided to rule against crypto mining for the same reason.
For the most part, the miners in the United States seem to think that any Bitcoin that has been mined outside of the region is not worth investing in. At the same time, the government regulatory authorities also do not seem to be very happy with Bitcoin mining and related enterprise. There is a massive case being ruled in the courts towards Ripple Labs that is trying to qualify digital assets as stocks or securities. SEC is putting a lot of pressure on this case. If this case is ruled in favor of the prosecutors, it will change the future of crypto forever.
Iranian Government Calls for a Complete Shut Down on Crypto Mining
The Iranian government has decided to take back the permits of the crypto mining farms and also put them on trial to pay for the damages that they have caused in the country. The Iranian intelligence agencies also conduct raids and surprise inspections to put out the wildfire of unsanctioned or illegal mining rigs.
The problem is so rife that the government has even offered a huge reward valued at about 80 million riyals. This amount is many folds bigger than the minimum wage paid in the country. Those who can tip the government about any illegal farming location would be able to enjoy this massive reward.
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