Iran has banned energy-intensive mining of cryptocurrencies such as bitcoin ahead of the peak electricity demand season. The extremely high consumption of electricity for mining has already led to power outages in major cities of the country, and the new ban is aimed at preventing similar situations in the future. The restriction is effective immediately and will remain in effect until September 22, Iranian President Hassan Rouhani said.

Note that in the country, cryptocurrency mining activities should be carried out only with a license, which only 15% of miners can boast of. Experts are worried that the new government decision could push them to switch to shadow mining. Note that the Iranian authorities are trying with all their might to eradicate illegal mining, not disdaining even the services of spies to detect illegal cryptocurrency miners, who sometimes hide computers even in mosques.

Subsidized electricity prices and economic sanctions restricting access to foreign exchange have made Iran a hot spot for miners, according to analyst firm Elliptic. Iranian officials blame cryptocurrency miners, increased production and a drought that is curtailing hydropower production for power outages that are damaging the country’s business and daily life.

Iran is currently in talks with the United States and other countries to reopen the 2015 nuclear deal. According to its terms, the country’s government must allow Western inspectors to visit its nuclear facilities, and Western countries, in turn, will weaken sanctions and allow foreign companies to invest in the development of Iran’s infrastructure.