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Tags Current Affairs

Iran bans crypto mining

Date: 30 December 2021 Tags: Miscellaneous

Issue

The Iranian authorities have ordered the closure of authorized cryptocurrency mining centres to tackle power shortages.

 

Background

The country is experiencing harsh winters, which requires additional amount of electricity to keep homes warm.

 

Details

  • The ban will be in place till March and will free up 209 megawatts of power for consumption in the household sector.

  • The authorities are also carrying out investigations to shut down illegal mining carried out by both individuals at home and larger-scale industrial units.

 

Role of crypto mining on electricity demands

  • Major cities across Iran have witnessed blackouts due to shortage of power available for consumption.

  • A large chunk of power is consumed in cryptocurrency mining. It is one of the most energy-intensive processes.

 

Reasons for growth in crypto mining

  • Majority of crypto mining industry was centered in China. The industry faced issues when the Chinese government imposed ban due to electricity shortages.

  • The industry started to look for countries offering protection as well as cheap power. Many countries were forced to impose limits on mining.

 

Other measures

Other measures to save electricity include turning off street lights in some areas and regulating electricity consumption in offices.

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