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According to local media reports, the Iranian power generation, distribution and transmission company (Tavanir) has shut down 1,100 illegal bitcoin mining companies in the country.
Whistleblowers informed authorities about the unauthorized miners following a July prize announcement, including 100 million rials (approximately $ 2,400).
Tavanir Mostafa deputy chief Rajabi Mashhadi told Fars News that the blitz on illegal cryptocurrency mining had previously been limited because the power company “cannot detect all illegal farms just by studying their consumption patterns.”
Iranian bitcoin (BTC) miners welcomed the authorization in July last year, but later complained about the high fees. Some have started operating underground using subsidized electricity.
According to Rajabi Mashhadi, some miners have installed equipment in industrial and agricultural units that are already energy-intensive to avoid detection. “Therefore, the monitoring of Tavanir does not reveal any significant change in the consumption of this particular category,” he added.
Iran, the world’s third largest oil producer, has also fought the smuggling of mining equipment into the country.
Since 2019, the Islamic Republic has issued 624 mining farm permits, reports the Financial Tribune, but some of the licensed farms are inactive. Last month, Iranian Vice President Eshaq Jahangiri Kouhshahi said that all miners will soon have to register with the government.
Iran’s biggest attraction is its cheap electricity, which attracts BTC miners from as far away as Ukraine and China. According to official data, mines in the country pay only 4,800 rials ($ 0.01) per kilowatt hour (kWh) of electricity, but the tariffs increase fourfold to 19,300 rials ($ 0.05) during the peak summer season. from June to September. .
As reported by news.Bitcoin.com, the state agency announced in July that it will cut up to 47% of the electricity tariff for miners during peak consumption periods in an effort to incentivize legalized mining.
However, in order to qualify for the incentive, bitcoin miners will have to participate in Tavanir’s “energy efficiency projects”, including the ongoing replacement of a million old air conditioners.
The Iranian government’s attraction to bitcoin is both political and economic, primarily motivated by the desire for financial freedom from US excess government.
What do you think of Iran shutting down bitcoin mining farms? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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