Iranian Power House Warns of Stringent Action on Illegal Crypto Mining

Iranian Power House Warns of Stringent Action on Illegal Crypto Mining
  • Fines for illicit mining actions have been raised by 400 percent.
  • First-time offenders would be denied access to subsidized energy for three months.

Iran’s Tavanir power distribution company has implemented a new set of stringent procedures to combat illegal crypto mining. Fines for illicit actions have been raised by 400 percent, according to spokesperson Mostafa Rajabi Mashhadi of the utility.

According to Mostafa Rajabi Mashhadi:

“Unlicensed crypto miners must pay their electricity bills at rates four times higher than export rates that are already higher than the subsidized tariffs for households.”

Illicit Miners Find Ways to Exploit Energy

Additionally, Mashhadi said that first-time offenders who are discovered would be denied access to subsidized energy for three months after their conviction. Those who are caught a second time would have their supply shut off for a whole year, the official stated in a statement posted on the Iranian Ministry of Energy’s website.

According to the article, crypto mining at state-run or public institution facilities will be punishable by law and result in the suspension of individuals involved in the Islamic Republic.

This year, the Iranian government had decided to limit crypto mining, fearing increased power use during the sweltering summer months. In June, Tavanir issued a cease-and-desist order to all permitted miners. The local crypto community responded angrily to the seasonal prohibition.

Electricity shortages and frequent blackouts were partly attributed in 2021 to the increasing power use for mining, including both legal and illicit, and licensed miners were forced to stop last May. Once again, they were advised to disconnect their equipment because of the increased need for heating in the winter months.

Crypto mining has been declared an industrial activity in Iran, effective July 2019. Since then, dozens of Iranian enterprises have sought licenses and begun minting coins using low-cost electricity from Iranian power plants.

Recommended For You:

Bitmain, Largest Mining Server Records Revenue Valuation of $8-9 Billion

A crypto enthusiast. Loves to write. Gives full dedication to every task assigned. Specializes in delivering on tight deadlines. An animal lover, especially dogs.