Iran Continues Crackdown on Illegal Crypto Mining, Seizes Hundreds of Mining Rigs – Mining Bitcoin News

Authorities in Iran continue their efforts to curb unauthorized cryptocurrency mining. The state-owned power distribution company recently identified over a dozen underground crypto farms in Tehran and other regions and took offline hundreds of mining units illegally connected to the power grid.

Energy supplier blows up 14 crypto farms in homes across Iran

The Iranian government continues to crack down on unlicensed crypto mining operations. The state-owned Iran Power Generation, Distribution and Transmission Company, Tavanir, seized 227 mining platforms last week. The employees found the devices in 14 illegal cryptocurrency farms set up by households in different parts of the country.

The mining equipment was found in apartments during inspections by Tavanir, the utility said, quoted by the Ibena news agency and the English-language business newspaper Financial Tribune. The coin mints have been discovered in the provinces of Tehran, East Azerbaijan, Isfahan and Khuzestan.

Cryptocurrency mining has become a popular source of income for a growing number of Iranians. The government legalized the activity in 2019. Companies wishing to operate coin computing centers must obtain approval from the Ministry of Industry, and over 50 companies have already done so.

While registered mining companies have to pay higher export prices for the electricity they use, private consumers in Iran have access to subsidized household electricity. Available cheap energy and rising cryptocurrency prices over the past year have led to illegal mining farms springing up across the Islamic Republic.

Crypto miners, both authorized and underground, have been largely blamed for the power shortage this summer as exceptionally hot weather increased demand for power. In May authorities imposed a temporary ban on all cryptocurrency mining to reduce the electricity deficit. Then, in August, Tavanir announced it would lift restrictions on licensed miners on September 22, when temperatures began to drop.

The power company confiscates all equipment from illegal miners and the Attorney General's Office recently banned the release of confiscated hardware until Iran's parliament decides how to deal with unregistered crypto farms and their operators. To date, Tavanir has taken possession of 221,390 mining rigs and turn off 5,756 illegal mining facilities. Their owners face fines for damage caused to the national distribution network.

According to official estimates from the Iranian utility, crypto farms authorized by the Ministry of Industry currently consume around 400 megawatts (MW) of electricity. At the same time, unlicensed miners are accused of burning nearly 2,000 MW per day.

Tavanir has warned of possible power outages in the winter months as electricity demand increases again amid continued pressure placed on the national grid by illegal mining operations. “Increasing electricity demand from unauthorized crypto miners will likely lead to power outages this winter, when gas consumption will also peak like it did in the summer,” the company explained. She also complained that current penalties are not harsh enough to discourage illegal miners and called for stricter measures.

Do you think the Iranian authorities will be able to limit unauthorized mining? Share your thoughts on this topic in the comments below.

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