The ban, which will be in place until March 6, will free up megawatts of power for consumption in the household sector, Rajabi Mashhadi said in an interview with state TV. Authorities are also cracking down on illegal mining carried out by both individuals at home and larger-scale industrial units, he added. These unlicensed operators account for the largest share of crypto mining in the country, consuming more than megawatts of electricity. Other fuel-saving measures include turning off street lights in some areas and regulating electricity consumption in offices. Iran banned crypto mining for a time earlier in the year amid a series of blackouts across major cities that was blamed in part on a surge in the energy-intensive process. While the majority of crypto mining was long centered in China, that changed this year when a nationwide ban sent operators to other nations, particularly places offering cheap power.
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- Iran using bitcoin mining to avoid international sanctions: study
- Lioness kills keeper, escapes Iran zoo with lion
- Bitcoin craze hits Iran as US sanctions squeeze weak economy
- Iran uses crypto mining to lessen impact of sanctions, study finds
- Bitcoin mining is helping Iran avoid US sanctions, study shows
- Iranian Minister Calls For Cryptocurrency Production to Bypass Sanctions
- Iran bans cryptocurrency mining for four months to stave off blackouts
- Iran Sanctions: Cryptocurrency
- Bitcoin in Iran: Draining Energy for Authoritarian Gains
- Illegal crypto mining to cause power cuts in Iran this winter: State power firm
Iran using bitcoin mining to avoid international sanctions: study
Traffic lights died. Offices went dark. Online classes stopped. Soon, fingers pointed at an unlikely culprit: Bitcoin. Authorities shuttered 1, centres across the country, including, for the first time, those legally authorised to operate. For Iran, anonymous online transactions made in cryptocurrencies allow individuals and companies to bypass banking sanctions that have crippled the economy. Bitcoin offers an alternative to cash printed by sovereign governments and central banks — and in the case of Iran and other countries under sanctions like Venezuela, a more stable place to park money than the local currency.
Electricity goes for around 4 cents per kilowatt-hour in Iran, compared to an average of 13 cents in the United States.
Iran is among the top 10 countries with the most Bitcoin mining capacity in the world — megawatts a day. The US network has a daily capacity of more than 1, megawatts. The transactions, called blocks, are then added to a public record, known as the blockchain.
On the other hand, the government worries about limiting how much money is sent abroad and controlling money laundering, drug sales and internet criminal groups.
Iranian cryptocurrency miners have been known to use ransomware in sophisticated cyber attacks, such as in when two Iranian men were indicted in connection with a vast cyber assault on the city of Atlanta. Iran is now going after unauthorised Bitcoin farms with frequent police raids.
Those who gain authorisation to process cryptocurrency are subject to electricity tariffs, which miners complain discourage investment. Despite the government giving permits to 1, investors, only a couple dozen server farms are active, he added, because tariffs mean Bitcoin farms pay five times as much for electricity as steel mills and other industries that consume far more power.
Within days, the government closed that plant despite its authorisation to operate. A sharp drop in supply or spike in demand, like this winter when more people are staying home because of the coronavirus pandemic, can upset the balance of a grid that draws mostly from natural gas. The smoldering fuel blackens the skies, particularly when the weather cools and wind carries emissions from nearby refineries and industrial sites into Tehran.
As the government publicised its clampdown on Bitcoin farms, miners balked at all the blame over their energy guzzling. Many warned that despite its potential to become a cryptocurrency utopia, Iran would continue to fall behind.
Anonymous online transactions made in cryptocurrencies allow Iranian individuals and companies to bypass banking sanctions that have crippled the economy. A token of the virtual currency Bitcoin is seen placed on a monitor that displays binary digits in this illustration picture.
Boxes of machinery used in Bitcoin mining operations that were confiscated by police in Nazarabad, Iran.
Lioness kills keeper, escapes Iran zoo with lion
The Associated Press Staff. Traffic lights died. Offices went dark. Online classes stopped.
Bitcoin craze hits Iran as US sanctions squeeze weak economy
Iran, which recently came under fire from President Donald Trump, may become the latest troubled economy to embrace cryptocurrencies. The report quotes an anonymous person as saying that closure of exchange offices, sanctions and a decline in the valuation of the national currency, the rial , might spur greater use of bitcoin. The South American country has developed its own national cryptocurrency called the Petro , which is backed by its oil reserves. Iran has already indicated its growing interest in a similar proposal. But bitcoin holders might find the going tough in Iran for several reasons, according to the Forbes post. For starters, the falling valuation of the Iranian rial makes bitcoin more expensive for the common man. Then there is the fact that transacting using bitcoin or any other cryptocurrency is not an easy task and requires technical knowledge. Finally, bitcoin has yet to prove itself as a viable medium for international transactions. Cryptocurrencies are both a curse and blessing for troubled economies. They enable countries to circumvent embargoes and trade with the rest of the world.
Iran uses crypto mining to lessen impact of sanctions, study finds
Air pollution blankets the skyline in Tehran, Iran, Wednesday, Dec 23, Iran's capital and its major cities have been plunged into darkness as rolling outages in recent weeks left millions with no electricity for hours. Soon, fingers pointed at an unlikely culprit: Bitcoin. The United States imposes an almost total economic embargo on Iran, including a ban on all imports including those from the country's oil, banking and shipping sectors.
Bitcoin mining is helping Iran avoid US sanctions, study shows
Iran banned bitcoin mining this week, after four months of continuous blackouts partially due to what officials say is a huge energy suck from illegal mining. But, he said, the huge amount of illegal bitcoin mining that happens in Iran was tapping a staggering 2 gigawatts of power each day from the already-stressed grid. Legal operations, meanwhile, used somewhere between and megawatts. Bitcoin, of course, is a huge electricity drain, due to the enormous amount of computing power needed to solve the equations required to mine the cryptocurrency. Digiconomist, which tracks the impacts of cryptocurrency, estimates that the energy use from bitcoin mining each year is between the current energy use of the Netherlands and Pakistan.
Iranian Minister Calls For Cryptocurrency Production to Bypass Sanctions
Iran's move is reminiscent of fellow petro-state Venezuela's recent decision to nationalize mining pools. Venezuela is also subject to US sanctions. Shortly after the US pulled out of a multilateral nuclear agreement in , it reintroduced sanctions on Iran that prohibited groups doing business with the Islamic Republic from also doing business with the US. As a result, Iran has limited ability to use any dollars it holds in reserve. Taken together, the embrace of the yuan and a state-sanctioned digital currency could help Iran sell more of its oil on the global market.
Iran bans cryptocurrency mining for four months to stave off blackouts
Over the past 10 years, the demand for cryptocurrencies has skyrocketed like very few other trade commodities. Today, the total cryptocurrency market cap has reached over three trillion dollars and the price for Bitcoin in early was nearly double what it was a year prior. The increase in price for these online currencies has prompted hysterical demands, encouraging millions of people to try their slice of the crypto pie - without understanding, or considering, the collateral environmental impact.
Iran Sanctions: CryptocurrencyRELATED VIDEO: Iran adopts Bitcoin - the new global standard ?
Representations of the virtual currency Bitcoin stand on a motherboard in this picture illustration taken May 20, Iranian officials could not immediately be reached for comment. The United States imposes an almost total economic embargo on Iran, including a ban on all imports including those from the country's oil, banking and shipping sectors. While, exact figures are "very challenging to determine", Elliptic estimates are based on data collected from bitcoin miners by the Cambridge Centre for Alternative Finance up to April , and statements from Iran's state-controlled power generation company in January that up to MW of electricity was being consumed by miners. Bitcoin and other cryptocurrencies are created through a process known as mining, where powerful computers compete with each other to solve complex mathematical problems. The process is energy intensive, often relying electricity generated by fossil fuels which Iran is rich in.
Bitcoin in Iran: Draining Energy for Authoritarian Gains
According to a report by the Mehr News agency, the Iranian Ministry of Trade has reached an agreement with the Central Bank of Iran to allow cryptocurrencies to be used for international settlements. We are finalizing a mechanism for operations of the system. This should provide new opportunities for importers and exporters to use cryptocurrencies in their international deals. Mehr News quoted Peyman-Pak saying. He emphasized that crypto and blockchain technology has benefits that the country cannot ignore.
Illegal crypto mining to cause power cuts in Iran this winter: State power firm
TEHRAN, Iran -- Iran's capital and major cities plunged into darkness in recent weeks as rolling outages left millions without electricity for hours. Traffic lights died. Offices went dark.