Iran tells Bitcoin miners to suspend activities amid energy demand surge and cryptocurrency plunge

Iranian Bitcoin miners have been told to halt their activities as the price of cryptocurrencies plunges and electricity demand in Iran surges, according to reports.

Around 118 authorised cryptocurrency mining centres in Iran will go offline from Wednesday, ahead of a peak in domestic energy demand, according to the head of the Iran Grid Management Company Mostafa Rajabi Mashhadi.

The price of Bitcoin has plunged in recent years, from $67,707 in November 2021 to the current rate of $20,416, according to financial market data provider Refinitiv, amid a mass sell-off of cryptocurrencies.

It is not clear how long the ban on crypto mining will last but one in 2011 following blackouts in Iran lasted for four months from late May until September.

The hot summer months in the country usually see a peak in electricity demand due to increased use of air conditioning.

Vast amounts of energy are consumed in Bitcoin mining and Iranian authorities have banned the activity twice during peak electricity demand.

Cryptocurrency mining was legalised in Iran in 2019 with miners required to sell to the central bank.

Iran has used Bitcoin mining as a way of generating funds and circumventing tough US sanctions, analytics firm Elliptic reported.

Around 4.5 percent of the world's Bitcoin mining is done in Iran, according to the BBC.