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Is cryptocurrency mining draining Iran's power grid?

President Hassan Rouhani told a cabinet meeting the main cause of the blackouts was a drought that had affected hydro-electric power generation. But he said cryptocurrency mining, 85% of which is unlicensed, was draining more than 2GW from the grid each day. An estimated 4.5% of all Bitcoin mining takes place in Iran.

Is crypto mining legal in Iran?

In August 2019, Iran issued a regulation that recognized crypto mining as a legal economic sector and became the first country to use cryptocurrency as reserves to pay for imports and exports.

Why has Iran banned cryptocurrencies?

DUBAI, May 26 (Reuters) - Iran has banned the energy-intensive mining of cryptocurrencies such as Bitcoin for nearly 4 months, President Hassan Rouhani said on Wednesday, as the country faces major power blackouts in many cities. "The ban on the mining of cryptocurrencies is effective immediately until September 22 ...

Why is Iran requiring bitcoin miners to register with the government?

On the one hand, Iran clearly sees crypto mining as a way to generate income for the state. Iran began requiring miners to register with the country’s Ministry of Industry, Mines and Trade and pay a higher tariff on electricity than retail or industrial users last year. But Iran has also blamed bitcoin miners for recent power outages.

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