Iran’s Power Grid Struck by Crypto Mining Surge

Asia Blockchain Review
July 16, 2019

The Government of Iran has decided to stop supplying power to crypto mining farms until new prices for energy are approved, according to a report by local news outlet Iran Daily. 

Mostafa Rajabi Mashhadi, an official at Iran’s Ministry of Energy, disclosed that electricity consumption in the country surged by 7% over a period of one month as measured on June 21st, 2019. 

According to Mashhadi, the spike in consumption was the result of increasing crypto mining activity in the country, and the government is taking action to address the issue. 

Crypto Miners to Pay Full Price for Power

The Energy Ministry official said the government is going to cut power to identified crypto miners until a recent proposal for new energy prices is approved. The new bill will result in crypto mining farms paying the actual costs of electricity, as opposed to rates that have been heavily subsidized by the Iranian administration. 

“The overconsumption of energy is causing problems for other users,” Mashhadi remarked.

As previously reported in June, the deputy energy minister of Iran proposed that crypto miners should be charged the same rates for power utilities as those intended for export. 

Iran’s Crypto Industry Is Booming 

Nonetheless, the country’s crypto industry has been growing rapidly since September 2018. Iranian authorities have officially accepted crypto mining as an industry and adopted a progressive stance towards virtual currencies. 

Despite profiting immensely from crypto mining activities, the country has to pay an estimated US$1 billion to subsidize the actual cost of electricity for its citizens. Cryptocurrency mining entrepreneurs in Iran are purportedly taking advantage of this discount to run their farms.


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
Shenzhen Firms Issue 6Mil. Blockchain Invoices in 12 Months
The Chinese city of Shenzhen has reportedly issued almost 6 million blockchain-based invoices over t...

August 17, 2019

Thailand Considers Extending AML Regulations to Crypto
Thailand’s Anti-Money Laundering Office has revealed that it may extend AML regulations to include c...

August 17, 2019

The Future of DEXs
Decentralized exchanges (DEXs), which are non-custodial by nature, were also much more secure than t...

August 16, 2019

DECENTRALIZED FINANCE: Defying the Global Financial System
Although it was only established last year, the DeFi system has already locked in US$500 million wor...

August 16, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us