The problems with the energy supply in Iran have led Bitcoin mining farms to use fossil fuels, causing health problems to many people. Although the authorities are granting licenses to some Bitcoin mining farms, they have closed hundreds of establishments.
The Authorities of Iran recently permitted around 30 Bitcoin mining farms to operate in the country. That seems to be softening the harsh measures that the government had taken against the mining business. Mining companies in different parts of the country received their licenses.
Iran is currently experiencing problems with the supply of energy, which has led Bitcoin mining farms to use fossil fuels. The resulting pollution has worsened the health problems of many people in the major cities of the country.
In addition to that, this lack of energy forced the Iranian authorities to establish electricity rationing cuts. The economic sanctions of the United States have contributed to the crisis that the country is undergoing. They have affected all industrial and commercial levels of Iran, wreaking havoc among the population.
These Are the Reasons for the New Licenses of Bitcoin Mining Farms
The Iranian authorities ordered the closure of Bitcoin mining farms for four months, aiming to ration energy. The now-former president of the country, Hassan Rouhani, said that they extended the ban on the mining activity until September 22nd.
The former head of State also alerted the authorities to take action against illegal cryptocurrency mining farms. He highlighted that 85% of the cryptocurrency mining activity in the country occurs clandestinely.
During Rouhani’s administration, the authorities closed hundreds of illicit mining centers and notified those legalized of the new temporary law. Although they did not say whether they would extend the four-month order to ban mining, it seems that they have relaxed it.
This authorization appeared a few days after the authorities seized 7,000 cryptocurrency mining machines in Tehran. One of the Bitcoin mining farms that have received a license will operate in the capital of the Islamic country itself.
The Authorities Still Has the Bitcoin Mining Business in Its Sights
The authorities of Iran have relaxed the measures, granting licenses to some Bitcoin mining farms. However, this does not seem to be the rule since they have closed hundreds of establishments. That indicates that the mining business is still in the sights of governments in several parts of the world.
The most relevant case is China, where the central authorities announced the almost immediate ban on cryptocurrency mining. The massive disconnection of equipment in the country led to the drop in the hash rate of the Bitcoin network.
Despite this hostility against the activity, some countries show their support for cryptocurrencies. Among the most enthusiastic is the United States, where many local administrations have offered to welcome Chinese migrant miners. Two of the most prominent states of the country are Texas and Wyoming.
Francis Suárez, the Mayor of Miami, said that migrant Chinese Bitcoin miners could operate in his city. He stated that Miami had an infrastructure that generates infinite and cheap energy, convenient for the activity. Suarez is one of the most enthusiastic about the adoption of crypto assets in the economic system.
By Willmen Blanco
