Just recently, the Iranian Government has made an announcement, which is the best news that the crypto-mining community was eager to hear. The government has announced that the cryptocurrency miners can resume their cryptocurrency mining operations starting Friday, October 1, 2021.
However, the government has reiterated that only the cryptocurrency miners with licenses to mine in Iran have the authorization to do it.
It is after a three-month ban that the mining firms will be able to resume their mining operations in Iran. It was back on May 26, 2021, when Hassan Rouhani, the former President of Iran had imposed a ban on cryptocurrency mining activities in the country.
Rouhani had announced that a three-month ban had to be imposed on the mining operations in the country. This decision was made in order to stabilize the electricity demand and supply in Iran. The power grids being run in Iran for the production of electricity are not very reliable.
Therefore, the government had to take everything into consideration given the fact that the temperature of the world is constantly rising. Being in the middle-east, Iran is one of the hottest countries in the world. In Iran, the temperature has the tendency to go all the way up to 49 degrees Celsius or 50 degrees Celsius in rare cases.
This is the reason why during the peak of the summer season, the electricity demand in the country rises to the extreme. Not wanting to suffer from electricity deficiency, the country decided to ban the mining operations across the board.
As Bitcoin mining requires a lot of energy, which is generated through electricity, the country had to make a harsh decision. In a matter of a few years, the Iranian region has started generating billions of dollars in revenues through the Bitcoin operations.
Despite the profitability, the government was concerned about the health, safety, and convenience of the citizens. Thus, the mining sector was banned in the country for at least a three-month period in order to save energy.
At the beginning of the year, Iran had already faced the worst electricity shortfall, where several cities in the country blacked out for several hours per day.
This was due to the illegal mining operations that were taking place in the country. This is when the Iranian Government started its crackdown against the illegal and unauthorized mining operations in the country. As a result, the Iranian Government has confiscated several thousands of mining rigs from illegal mining farms.
Finally, after waiting for three months, the Iranian mining sector can now resume its Bitcoin mining operations. According to stats, Iran is currently responsible for mining 4.5% to 7% of the total Bitcoin being mined all over the world.
This is a huge achievement by Iran, given the fact that it is currently facing a huge downfall in terms of its economy and inflation.