Iranian officials have closed nearly 7,000 unauthorized facilities for cryptocurrency mining over the past two years, local media said. Most of the illegal Bitcoin farms were reportedly concentrated in five states of the Islamic Republic, including Tehran.
Iran continues to crack down on unlicensed cryptocurrency mining
Iranian authorities have unplugged and dissolved a total of 6,914 crypto farms operating without a mining license. This was announced this week by the English Iranian daily Financial Tribune, since authorities began cracking down on the illegal extraction of cryptocurrencies in 2020.
The newspaper quotes a report by Iribnews.ir, detailing that these facilities consumed about 645 megawatts of electricity while coining digital currencies without permission. This is estimated to be equal to the annual consumption of the three major regions of North Khorasan, South Khorasan and Chahar Mahal Bhaktiari.
Cryptocurrency mining has been legally engaged in industrial activities in Iran for almost three years after the government approved sector regulation in July 2019. A licensing system has been introduced and companies wishing to get involved in the business need to get approval from the ministry of the industry.
However, many Iranian miners have chosen to stay under radar because registered cryptocurrency miners need to purchase the required electrical energy at higher export rates. They usually illegally connect to the grid and use subsidized power to power mining hardware.
Iran’s power, distribution and transmission company (Tavanir) has tracked underground cryptocurrency farms, closed them and confiscated hundreds of thousands of mining machines.If identified, their operators could be fined for damages inflicted on the distribution network, a report revealed last month that the government is preparing. Increase the penalty..
Last summer, the country’s electricity shortage was partially blamed for increased electricity usage for coin mining, even licensed miners. shut down Their equipment.They were allowed to resume operations in September, but then again Ordered In the cold winter months, the activity will be suspended as the power shortage spreads.
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