Iran confiscates 3,000 crypto mining units in a single week
Authorities in Iran seized 3,000 units of mining hardware in just one week in an attempt to curb illegal crypto mining amid power shortages and blackouts. In a single year, Iranian law enforcement closed over 180 crypto farms in Tehran Province alone.
Over 500 crypto mining rigs confiscated in Tehran
As the government’s offensive against unauthorized crypto mining intensifies, authorities have discovered and confiscated more than 3,000 mining equipment, the Iranian utility announced on Wednesday. Over 500 devices were confiscated in Tehran Province, where law enforcement authorities closed 183 illegal crypto farms with 11,000 mining units in the past fiscal year.
Another 600 mining platforms have been found in the province of Kerman, the Iran Power Generation, Distribution and Transmission Company (Tavanir) told the Financial Tribune. There are also illegal mining farms in the provinces of Khuzestan, Mazandaran, Qom and Bushehr, according to the Iranian business newspaper.
The seizures of mining hardware come after Tavanir warned unlicensed miners last week that his patience was running out. The state-owned company called on citizens minting digital coins in their homes to turn off mining equipment. The utility stressed that those who fail to comply will be disconnected from the grid upon identification and their mining facilities will be confiscated.
Tavanir aims to save 2,000 MW of electricity that is used daily for unlicensed mining
High cryptocurrency prices and subsidized electricity have pushed many Iranians to crypto mining in the past year. And while the government has authorized a number of institutions to legally mint digital currencies in the country, these only account for around 300 megawatts (MW) of daily electricity consumption. According to estimates by the Iranian government, illegal mining operations burn around 2,000 MW every day.
The Iranian authorities have blamed this year’s power shortages and blackouts on low rainfall, a higher demand for electricity with rising temperatures and also on the increasing cryptocurrency mining. In May, Tavanir said that even licensed miners would be closed during peak usage times to deal with a daily electricity shortage of 5,000 MW.
Later that month, Iranian President Hassan Rouhani announced a ban on digital coinage until September. This week, Rouhani also called for rules to regulate the crypto sector, as Iranian Economy Minister Farhad Dejpasand warned that the government cannot stand in the way of crypto technology development for too long.
The Tehran authorities approved the mining of cryptocurrencies as a legal industry in the summer of 2019. The Islamic Republic introduced a licensing system for Bitcoin mining companies that were required to pay their electricity bills at export prices. The regulations were revised in April and crypto miners have since been charged 16,574 Iranian rials ($ 0.39) per kilowatt hour (kWh) of electricity, which is four times the original price.
What do you think of Iran’s policy towards mining cryptocurrencies? Do share your thoughts on the matter in the comments below.
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Prohibition, Bitcoin, power outages, confiscation, consumption, crypto, crypto mining, cryptocurrency, electricity, equipment, hardware, Iran, Islamic Republic, miners, mining, mining farms, mining rigs, power, confiscations, bottlenecks, Tavanir, Tehran, province Tehran
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