Iran to lift Bitcoin mining ban in September! Iranian Bitcoin hashrate may see a significant increase

According to the Iranian English news site Financial Tribune, Iran is set to lift its ban on cryptocurrency mining in late September this year. Mostafa Rajabi Mashhadi, a spokesperson for Iran's Power Generation, Distribution, and Transmission Company (Tavanir), mentioned that the country's "industrial, mining, and trade sectors" will resume mining activities on the previously scheduled date of September 22nd without any extension of the ban. Mashhadi stated, "Tavanir expects the electricity consumption to decrease gradually in the coming months, allowing legal cryptocurrency miners to continue their operations."

According to the Iranian English news website Financial Tribune report, the country is set to lift the ban on cryptocurrency mining in late September this year. Mostafa Rajabi Mashhadi, the spokesperson for Iran's Power Generation, Distribution, and Transmission Company Tavanir, stated that the country's "industrial, mining, and trade sectors" will resume mining on the previously scheduled date of September 22nd without any extension of the ban. Mashhadi mentioned, "Tavanir expects the electricity consumption to decrease gradually in the coming months, allowing legal cryptocurrency miners to continue their operations."

This move could potentially lead to a significant increase in the hashing power of the Bitcoin blockchain.

In May of this year, Iran's local power grid faced high loads due to high temperatures and energy shortages. As a result, President Hassan Rouhani ordered a temporary ban on mining. Data indicated that Iran's Bitcoin mining accounted for approximately 4.5% of the total hashing power at that time (Note: equivalent to a potential income of one billion USD). If Iran had not issued the stop order, coupled with China's crackdown on mining leading to a drastic drop in hashing power, Iran's share of the hashing power would have significantly increased.

Cryptocurrency mining in Iran is a regulated activity, and the country has paved a new path to bypass US economic sanctions. Following the Trump administration's abandonment of the multilateral nuclear deal in 2018 and pressuring other countries to cease dealings with Iran, the oil-rich Iran found itself with very few customers. With dwindling foreign reserves and limited options, Iran officially legalized cryptocurrency mining in 2019 and subjected it to taxation to offset substantial electricity subsidies. The following year, the country ordered cryptocurrency miners to "sell" their Bitcoin mining rewards to the Iranian central government to evade US financial sanctions.

In fact, Iran's abundant natural resources have placed it among the top five countries with low electricity costs globally; however, this year's rotating blackouts have proven that the country's power grid still struggles to handle high power demands, at least not without being able to cope with the energy-intensive Bitcoin mining industry in "manageable energy supply conditions."