After a four-month prohibition, the Iranian government has decided to allow digital currency block reward mining to resume in the Middle Eastern country. Iran’s national power generator took the decision earlier this month, but the country’s national power generator is still concerned about the number of illicit block miners.

President Hasan Rouhani halted block reward mining in late May, as CoinGeek reported, citing concerns about its influence on the national energy supply. The decision was made following a series of power outages around the country, including severe blackouts in Tehran, the capital. Officials in Iran’s government recognized block reward mining as one of the most energy-intensive activities, expressing concern about illicit miners, which the government is still battling.

According to the Financial Tribune, an English-language Iranian newspaper, licensed miners will be allowed to begin operations on September 22. Mostafa Rajabi, a spokesman for the Iran Power Generation, Distribution, and Transmission Business (Tavanir), said the company hopes that the high energy usage would decrease once summer ends, and autumn arrives.

While legal miners will restart operations in a month, Tavanir is concerned about the illicit miners’ presence. According to the Iranian government, this group of miners accounts for around 85% of the market. These miners consume roughly 3000MW per day, about half of the city’s total daily power consumption.

However, high energy usage isn’t the only issue they have. Illegal miners, according to Tavanir, have also harmed power distribution infrastructure, leading to widespread blackouts.

Iran’s government has increased its attempts to combat illicit miners. Authorities have seized 212,373 mining equipment, according to Tavanir. This equipment is said to have cost the utility and power distribution firm 180 trillion rials ($426,641,382) in damages and lost revenue.


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