Iran Amends Regulations to Ease Crypto Miners’ Access to Renewable Energy – Mining Bitcoin News

Iran Amends Regulations to Ease Crypto Miners’ Access to Renewable Energy – Mining Bitcoin News
Iran Amends Regulations to Ease Crypto Miners’ Access to Renewable Energy – Mining Bitcoin News

The authorities in Iran have revised some rules for the crypto mining industry to facilitate access to green power. Licensed miners will now be able to buy electricity produced from renewable sources from all over the country at lower prices.

Cryptocurrency miners in Iran are allowed to mine green energy from all over the country

Iran’s Ministry of Energy has changed certain crypto mining rules to facilitate access to renewable power for entities authorized to mint digital currencies in the Islamic Republic.

A recently issued decree exempts miners from the obligation to use on-site power generation capacity and allows them to purchase renewable energy electricity from across the country and through the national grid, Bargqnews revealed.

Until now, mining companies could only sign contracts with renewable power plants located in the same province, pointed out Mohammad Khodadadi, an official at the Iran Power Generation, Transmission and Distribution Company (Tavanir).

The report, cited by English-language news paper the Financial Tribune, also revealed that Iranian firms that legally mine clean energy will not be charged the usual transmission fees for using the country’s electricity grid.

The positive changes for the mining sector come after Iranian authorities announced in December a decision to allow power plants producing green energy to supply licensed miners. This change was an initiative of the Ministry of Energy in Tehran.

Iran has experienced power shortages during the hot and dry summers and cold winter months and partly blames the energy-intensive bitcoin mining industry for the deficit. In 2021, registered crypto farms were ordered to shut down their power-hungry equipment on more than one occasion.

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This year, Tavanir again asked miners to suspend activities until the end of summer, citing expected power shortages due to rising demand due to increased consumption for cooling. The restrictions triggered negative reactions from the country’s crypto community.

The state-owned utility also promised to crack down on unlicensed cryptocurrency miners, increasing fines for illegal mining by 400%. According to official data released in May, the Iranian government had identified and shut down nearly 7,000 facilities minting digital coins illegally.

Such improvised crypto farms are often run on subsidized household electricity and have become a popular source of income for many Iranians. In a series of raids so far, Tavanir employees have confiscated hundreds of thousands of mining equipment.

Tags in this story

Crypto, Crypto Miners, Crypto Mining, Cryptocurrencies, Cryptocurrency, Electricity, Energy, Green Power, Iran, Iranian, Miners, Mining, Power, Regulations, Renewables, Renewables, Rules, Transfer Fees

Do you think Iran will allow crypto miners to resume operations before the end of summer? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “To be a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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