By Shelly Melancon (Switzerland)
Earlier in June, it was reported that Iran had embarked on a crackdown against illegal crypto miners in view of power failures within the country. However, the facts may have been misrepresented as Iran’s Ministry of Industry, Mine and Trade has revealed that illegal crypto mining is not responsible for the spate of power outages in July and August. The latest statement contradicts a report issued in August by a leading power firm in Iran, Tavanir.
According to Tavanir’s report, illegal crypto mining consumed 2000 megawatts of power. The claims in the report have been disproved by the ministry, which also asserted that the data contained in the report is likely to have been exaggerated by Tavanir to suit its narrative. As per the ministry’s director of investment and planning, Alireza Hadi, that amount of power can only be utilized by 3 million pieces of hardware.
Tavanir Alleges Illegal Mining Responsible for 80% Blackouts
Although miners in Iran usually have to obtain licenses from relevant authorities, and a number of miners operate without license, the ministry has declined to hold unlicensed miners responsible for the power failures the country suffered between July and August. Nonetheless, Tavanir is insistent on its controversial report. The power firm noted that Iran would experience 80% less blackouts if unlicensed miners halted their operations.
Also read:Interestingly, in the wake of the blackouts, the Iranian government had issued a directive in August to miners to cease their activities. The directive also came at a time when Iran was heading into Summer, prioritizing the need for regular supply. In view of the directive, miners are to resume their operations in September. The aftermath of the cessation order was a huge reduction in the global mining hash rate coupled with the mining ban in China that saw mining firms leave the Asian country in droves.
Iran Takes Hard Line Against Household Miners in June
Back in June, an illegal mining cleansing took place, and authorities arrested and imposed a fine on those caught mining with household electricity. On its part, Tavanir alleged that it has already closed down more than 5000 illegal mining farms and seized 213,000 unlicensed mining hardware capable of utilizing 850 megawatts of power.
Currently, the ministry has licensed 56 mining firms that utilize 400 megawatts altogether. Last year, authorities granted 126,000 mining units licenses, reported to consume up to 195 megawatts when fully operational.
As Iranian miners resume their activities this month, it has been noted that Bitcoin’s global hash rate is rebounding, with Chinese miners also contributing to its recovery. The majority of miners in Iran are still those who were exiled in China. Apart from Iran, miners from China also migrated to regions like the US, Canada, Kazakhstan, etc.
Following their exodus, China’s share of the global hash rate declined from a whopping 75% to 46%. It may likely have gone below 46% since some miners are still leaving the Asian country. A corresponding increase was noted in the hash rate of other regions as well.
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