Iran Launches Crackdown on Cryptocurrency Mining

Iranian authorities have shut down 1,620 illegal cryptocurrency mining farms that used nearly 250 megawatts of electricity in the last 18 months. The country announced in July that all crypto miners must register their rigs with the government.

According to the details shared by Tavanir, a state-owned power generation, distribution, and transmission company, unauthorized crypto mining farms causing heavy damages to the power distributors in the country.

Commenting on the recent crackdown, Mostafa Rajabi Mashhadi, a spokesman of Tanavir, said: “Tavanir is strict in dealing with unauthorized miners, those who use subsidized power, such as unlicensed miners, will be fined as much as the loss they impose on the national grid. Their mining places will be disconnected from the national grid and face prosecution.”

Iran’s Vice President Eshaq Jahangiri mentioned in a directive published in July 2020 that cryptocurrency miners are required to disclose their identities and other technical details of their mining farm at the time of registration. The crypto mining community in Iran opposed some of the requirements outlined by the Government and mentioned that Iran is discouraging crypto mining in the country by imposing high electricity tariffs.

Cryptocurrency Mining

China has been a dominant force in crypto mining. According to an estimate, China accounts for more than 50% of the global hash rate. Ripple termed Bitcoin and Ethereum as Chinese-controlled currencies because of China’s dominance in Bitcoin and Ethereum mining. However, the recent trend shows that high electricity prices and a regulatory crackdown by China forcing local miners to consider other locations worldwide.

FortuneZ earlier reported about the growing interest of Chinese cryptocurrency miners in countries like Sweden and Norway, due to cheap electricity prices. The recent example of Iran shows that high electricity tariffs and a crackdown by the regulatory authorities will harm the overall growth of the crypto mining industry in the country and just like China, Iranian crypto miners may consider other locations to run their operations.

(Photo: pixabay)

bitcoin
Bitcoin (BTC) $ 61,750.00 3.71%
ethereum
Ethereum (ETH) $ 3,967.47 4.90%
binance-coin
Binance Coin (BNB) $ 480.59 4.08%
cardano
Cardano (ADA) $ 2.25 4.25%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 1.17 5.14%
solana
Solana (SOL) $ 162.86 3.30%
polkadot
Polkadot (DOT) $ 43.22 8.46%
usd-coin
USD Coin (USDC) $ 1.00 0.15%
dogecoin
Dogecoin (DOGE) $ 0.241720 5.84%
S&P 500  ^GSPC 
$4,471.37  $33.11  (0.75%)
Dow Jones Industrial Average  ^DJI 
$35,294.76  $382.20  (1.09%)
NASDAQ Composite  ^IXIC 
$14,897.34  $73.91  (0.50%)
Russell 2000  ^RUT 
$2,265.65  $8.52  (-0.37%)
Crude Oil Nov 21  F*CL.NYM 
$82.66  $1.35  (1.66%)
   
$0.0000  $0.0000  (0.00%)