Legal Crypto Mining Rigs in Iran Face Power Cuts: Government Cites Unsustainability

Iran's legal cryptocurrency mining operations are facing imminent power cuts as the government declares them unsustainable. The move follows weeks of disruptive power blackouts across Tehran and surrounding provinces, fueling concerns about the country's energy infrastructure.

TEHRAN–Iran’s capital and outlying provinces faced rolling power blackouts for weeks in October and November, with electricity cuts disrupting people’s lives. The government now attributes part of the problem to the energy demands of legal crypto mining farms, leading to the planned power reductions.

This decision comes amid a broader crackdown on illegal cryptocurrency mining. Iran is offering bounties to combat illegal cryptocurrency mining activities which officials say are seriously disrupting the country's electricity network amid severe power shortages. The government believes that these illegal operations are placing an unacceptable strain on the already burdened national grid.

According to local news outlet Arz Digital, the day prior, Rajabi Mashhadi, a spokesperson for Iran's Ministry of Energy, said that the entity would be cutting the power to licensed mining facilities. This directive highlights the severity of the situation and the government's determination to prioritize the stability of the national electricity supply.

The future of legal crypto mining in Iran remains uncertain. While the industry offered a potential economic boost, its energy demands are now viewed as a significant liability. The government's actions underscore the challenge of balancing economic opportunities with the need for a reliable and sustainable power infrastructure.