With the Beijing government cracking down on their business, Chinese miners have been looking for other jurisdictions. Iran provides low-cost energy and has become a potential destination. However, the country’s state-owned power company expressed concern about the possible influx of miners and illegal imports of mining hardware from China.
Tawanir warns of the influx of Chinese miners and equipment into Iran
Tavanir, an Iranian power generation, distribution and transmission company, has issued a warning about the entry of Chinese cryptocurrency miners into Iran. Suppress In the industry. The state-owned utility company shared its concerns in correspondence with the Central Working Group on Combating Smuggling of Goods and Foreign Currency.
In a letter published by the economic news website Eghtesadnews, Tavanir CEO Mohammad Hussein Motevallizadeh referred to media reports about the closure of Chinese mining facilities. According to reports cited by the English-language business daily “Financial Tribune”, the executive warned that the government’s offensive in the industry may push Chinese miners to other countries.
Motevallizadeh called for strict control measures to prevent the influx of mining companies and coin minting hardware from the People’s Republic into Iran. He said:
Lower electricity costs make Iran attractive to Chinese mining tools. They are likely to start smuggling mining equipment into the country.
Cryptocurrency is becoming more and more popular in Iran, and many Iranians are investing in an increasing situation price in the past year. Cheap subsidized electricity has also promoted crypto mining, which the Islamic Republic considered as a legal industrial activity in the summer of 2019.Iran’s importance as a mining destination has increased, according to a learn According to a study by the University of Cambridge, the country accounts for more than 4.6% of the global computing power.
According to the “Financial Tribune”, Iran has issued 50 licenses to mining entities, but in late June, the Ministry of Industry, Mining and Trade Counted 30 Licensed crypto farm. That was after the department announced in April that miners were paying 16,574 rials ($0.39) per kilowatt-hour, which was four times the initial rate, and some of them might be forced to go underground or even shut down. The largest permitted mining facility in Iran is located in Rafsanjan City and is owned and operated by the Chinese.
The energy-intensive casting of digital currencies was listed as one of the main reasons for power shortages and blackouts across the country this summer. The record high temperature has greatly increased the demand for electricity. In May, the Tehran government stated that it would closure Even miners who are licensed during peak consumption periods. At the same time, Tavanir has been tracking down illegal mining activities and has seized more than 200,000 pieces of hardware in the past few months. The power company claims that these devices use approximately 750 megawatts of electricity, which is equivalent to the total consumption of five provinces.
After the latest statements and actions of the Iranian authorities, do you expect many Chinese miners to move to Iran? Let us know in the comments section below.
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