The number of illegal crypto-mining farms caught in Iran is approaching 7,000.

Iranian authorities have closed nearly 7,000 unauthorized facilities for cryptocurrency mining over the past two years, local media reported. According to the report, most of the illegal Bitcoin farms are concentrated in five states of the Islamic Republic, including Tehran.

Iran continues crackdown on unauthorized cryptocurrency mining

Iranian officials have unplugged and disbanded a total of 6,914 cryptocurrency farms operating without mining permits. This was revealed this week by Iran’s English-language daily Financial Tribune since authorities began cracking down on illegal cryptocurrency extraction in 2020.

The paper cited a report from detailing that the facility burned about 645 megawatts of electricity while minting digital currencies without permission. This is estimated to be equivalent to the annual consumption of three major regions: North Khorasan, South Khorasan and Chaharmahal-Bakhtiari.

Cryptocurrency mining has been a legal industry activity in Iran for nearly three years now, after the government approved regulations for the sector in July 2019. A licensing system has been introduced and companies wishing to engage in business must obtain approval from the Ministry of Education. of industry.

However, many Iranian miners have opted not to be monitored because registered cryptocurrency miners must purchase the necessary electrical energy at higher export rates. They typically connect to the grid illegally and use subsidized electricity to power mining hardware.

An Iranian power, distribution and transmission company (Tavanir) has tracked down and closed down an underground crypto farm and confiscated hundreds of thousands of miners. If caught, the operator could be fined for damage to its distribution network, and the government reported last month that it was preparing to raise the fine.

The country’s electricity shortage last summer was partly responsible for the increased electricity usage for coinage, and even licensed miners were asked to shut down their equipment. They were able to resume operations in September, but were ordered to shut down again as power shortages increased during the cold winter months.

tags in this story

bitcoin farm, bitcoin miner, bitcoin mining, closure, consumption, crackdown, cryptocurrency, cryptocurrency farm, cryptocurrency miner, cryptocurrency mining, cryptocurrency, cryptocurrency, deficit, electricity, fine , iran, iran, miners, mining, mine farm, penalty, shortage, closure, tavanir

Do you expect Iran to continue cracking down on unauthorized cryptocurrency mining? Let us know in the comments section below.

5D400B11 D5DE 4922 B4F4 0F7229C37672

Lubomir Tasev

Lubomir Tassev is a tech-savvy Eastern European journalist who likes Hitchens’ quotes. In addition to cryptocurrencies, blockchain, and fintech, he said, international politics and economics are two other sources of inspiration.

image credit: Shutterstock, Pixabay, Wiki Commons

disclaimer: This article is for reference only. We do not directly offer or solicit an offer to buy or sell, or recommend or endorse any product, service or company. We do not provide investment, tax, legal or accounting advice. Neither the company nor the authors shall be liable, directly or indirectly, for any damage or loss arising out of or alleged to have arisen out of the use or reliance on the content, goods or services mentioned in this article.

Leave a Comment