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After Tehran suffered rolling blackouts, Iran bans bitcoin mining

FILE PHOTO: A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken January 8, 2021.
REUTERS/DADO RUVIC/FILE PHOTO/FILE PHOTO
Joe Sommerlad
Iran has moved to ban bitcoin mining after a number of its cities including Tehran suffered rolling blackouts due to the increased strain placed on the country’s ageing electricity infrastructure from accelerating demand.
Speaking on state TV, Iranian president Hassan Rouhani said the ban would be in effect until 22 September, blaming the problem on unlicensed miners operating without an official permit.
“Now everybody has a few miners laying around and are producing bitcoins,” he said during the televised cabinet meeting, acting decisively with a month to go before the county goes to the polls in its latest presidential election to decide his future.
The country’s state-run power company Tavanir said on Wednesday that the country only has 50 licensed bitcoin farms and that 85 per cent of mining is carried out illegally, running on 95MW per hour of state-subsidised energy.
Iran has been hard-hit by overwhelming demand on its power networks of late, which has increased markedly as the arrival of the sweltering summer months pushes up air conditioning use and government stay-at-home orders in response to the coronavirus pandemic mean more household electronic devices are in use.
The surge has even resulted in medical facilities struggling to run vital cold storage units.
However, there is disagreement within the Iranian parliament as to whether cryptocurrency mining is really to blame, with the head of its digital economy commission Mojtaba Tavangar recently insisting that the sector accounts for just one per cent of domestic energy use and arguing: “The reason behind the power outages is not cryptocurrency mining, it’s stopping funding and the old distribution and generation network.”
An Elliptic study published earlier this week suggested that Iran now accounts for 4.5 per cent of the world’s bitcoin mining, with users attracted by the prevalence of cheap power backed by its plentiful natural gas reserves.
Generating the electricity required to maintain the practice involves the equivalent of around 10 million barrels of crude oil a year or four per cent of total Iranian oil exports in 2020, according to Elliptic.
The report also alleged that the rogue state was using cryptocurrency as a means of bypassing damaging economic sanctions placed on it by the US and other nations as punishment for its refusal to dismantle its nuclear programme and support for organisations considered to be terror groups.
US president Joe Biden’s administration and other global powers have been in talks with Tehran to revive a 2015 nuclear deal that was torn up by his predecessor, Donald Trump.
This is not the first time Iran has cracked down on illegal bitcoin mining, the country seizing 50,000 computers in January and offering a IRR200 million (£3,370) reward to any whistleblower who comes forward with information on illegal activity.
China and Turkey have also made similar moves against the cryptocurrency this year after its popularity boomed during the pandemic, while it has increasingly attracted negative attention over its intensive energy demands and significant contribution to the climate crisis.
Influential tech entrepreneur and investor Elon Musk caused a further ripple in digital coin markets this week when he said he had been in discussion with miners over some “potentially promising” green solutions to the issue.
The Independent, May 27, 2021, 10:00 A.M GMT
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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