Iran has shut down nearly 7,000 illegal crypto mining operations as it seeks to resolve its energy crisis
Iranshut down nearly 7,000 illegal sites crypto-miningoperations since the crackdown began in 2020.
- The country is currently considering increasing the fine and adding prison terms to the penalties for
- Iran was among the first countries in the world to legalize crypto mining in 2019.
Iranian authorities have shut down 6,914 crypto farms operating in the country without a valid license over the past two years. Local authorities have been cracking down on illegal crypto mining operations since 2020, when the leadership of the national power grid began pointing the finger at crypto mining to fuel Iran’s energy supply.
According to an Iranian news publication, these crypto farms burned around 645 megawatts of power while conducting their operations without permission. The authorities estimate that this amount is equal to the annual consumption of three regions of the country – North Khorasan, South Khorasan and Chaharmal-Bakhtiari.
The Middle Eastern nation was one of the first countries in the world to approve crypto mining as an industrial activity in 2019. Since then, the country has established a licensing regime that requires crypto miners to to have a license, to identify themselves, to pay a higher price. tariff on energy consumption and sell their mined Bitcoin to the government.
As a result, many crypto miners in Iran have chosen to conduct their mining activity illegally in order to take advantage of subsidized electricity tariffs.
Things could get worse for illegal crypto miners in Iran
In September, authorities reportedly confiscated more than 220,000 mining equipment and closed nearly 6,000 farms. Six months later, another 900 were added to the list. With the number of illegal cryptocurrency mining operations still on the rise, the Supreme Power Authority in Iran is currently considering increasing the penalties for unauthorized cryptocurrency mining operations.
As it stands, miners have to pay a fine and compensate for the damage they cause to the power grid. Under the new regulations, not only will the monetary fine be higher, but it could also include a jail term.
Increased penalties include multiplying fines by at least three and at most five times, imprisonment of the offender, and revocation of the offender’s business license.
Statement by Mohammad Khodadadi Bohloui, head of the Iranian power generation company Tavanir
As Iran tries to solve its crypto-mining conundrum at home, the
The sanctions have led to massive inflation and a rise in food prices of more than 300%. The AP news agency reported that inflation in Iran has soared to 40%, the highest level since 1994. The smuggling of highly subsidized bread from Iran to neighboring countries Iraq and Afghanistan , has also increased as hunger spreads in the region.
Crypto Mystery: About $3.5 Billion From Bitcoin To Terra Just Disappeared
Terra LUNA Crypto Crash Sparked Debate Over ‘True’ Decentralization