Number of illegal crypto mining farms busted in Iran approaches 7,000 – Bitcoin News

Local media revealed that over the past two years, Iranian authorities have shut down nearly 7,000 unauthorized cryptocurrency mining facilities. According to a report, most of the illegal bitcoin farms are concentrated in the five provinces of the Islamic Republic, including Tehran.

Iran Continues Crackdown on Unlicensed Cryptocurrency Mining

Iranian officials have closed and disbanded a total of 6,914 crypto farms without mining licenses. The news was published this week by Iranian English-language daily Financial Tribune since authorities began cracking down on the illegal extraction of cryptocurrencies in 2020.

The newspaper cited a report from detailing that the facilities burned around 645 megawatts of electricity while minting digital currencies without permission. This is estimated to be equivalent to the annual consumption of three main regions – North Khorasan, South Khorasan and Chahar Mahal-Bakhtiari.

Cryptocurrency mining has been a legal industrial activity in Iran for almost three years after the government approved regulations for the industry in July 2019. A licensing system has been introduced, and companies that want to participate in the business need to be licensed by the Ministry of Industry.

However, many Iranian miners choose not to be under the spotlight as registered crypto miners need to buy the electricity they need at a higher export rate. They are often illegally connected to the grid and use subsidized electricity to power their mining hardware.

Iran’s Generation, Distribution and Transmission Corporation (Tavanir) has been tracking down underground crypto farms, shutting them down and confiscating hundreds of thousands of mining machines.If identified, their operators could be fined for damage to the distribution network, with a report last month suggesting the government was preparing increase punishment.

The country’s power shortages last summer were partly blamed on increased electricity use for coin minting, even requiring licensed miners closure their equipment.They were allowed to resume operations in September, but again order During the cold winter months, activities were suspended in the face of growing power shortages.

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Do you want Iran to continue its crackdown on unlicensed crypto mining? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

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