Iran’s government plans to remove the ban on cryptocurrency mining on September 22. According to the Iran Power Generation, Distribution, and Transmission Company (Tavanir), the power demand strain will have subsided by then, and miners will be able to restart operations.
Under the direction of former President Hassan Rouhani, the Ministry of Industries, Mining, and Trade abolished the mining industry restriction. It was initially implemented to reduce power consumption.
According to the Financial Tribune, the mining industry has been putting a burden on the country’s electricity grid. It did, however, point out that the power consumed by legitimate miners was only a fraction of the total quantity. Unlicensed miners, on the other hand, are said to burn 2,000–3,000 MW per day – over half of Tehran’s daily demand.
However, the government is not wholly opposed to cryptocurrency. It will implement a legal framework to control the market in June 2021. This was the outcome of an order issued by Rouhani, who also made bitcoin mining lawful in 2019.
Overall, Iran is taking a somewhat cautious approach to regulating the cryptocurrency business. None of the laws it has enacted have been severe. It appears that crypto could gain acceptance there, but with restricted use cases.
In 2021, the mining industry will be severely impacted. Several governments have focused on miners as they consider a broad regulatory framework. In general, the regulatory procedure is tough to implement, but governments do have the ability to limit mining while they work on regulation.
China is carrying out the most visible crackdown on the mining industry. With low power prices, the country is a hotspot of mining activity. Several mining farms in several regions have been ordered to close by the government.
Suffocating the mining industry may have a brief negative impact on the market, but overall, the business is thriving. As more networks adopt staking consensus techniques, the problem is becoming less concerning. Meanwhile, Bitcoin is well-protected by a large amount of investment from both individual and institutional investors.
The mining business is doing well, with many asset managers investing in connected companies. BlackRock, the world’s largest asset manager, recently disclosed in an SEC filing that it owned $384 million in mining stocks. Riot Blockchain and Marathon Digital Holdings are two of the most preferred alternatives among large-capital investors.