Iran’s state-owned electricity distribution company, Tavanir, has threatened tough measures to stop illicit crypto mining. These include much higher fines for those using subsidized power to mint digital currency and penalties for government officials involved in mining.
Tavanir raises fines for illegal cryptocurrency mining
The Iranian Electricity Generation, Transmission, and Distribution Company (Tavanir) has adopted new, more stringent measures to prevent extra-legal crypto mining. Mostafa Rajabi Mashhadi, a spokesman for the utility, announced a 400% increase in fines for illegal activities in the sector. Quoted by Iran’s English-language Financial Tribune, he elaborated.
Unauthorized crypto miners must pay for electricity at four times the export rate, which is already higher than subsidized rates for households.
Mashhadi also stated that first-time offenders are denied access to subsidized energy, including electricity, natural gas, and liquid fuels, for three months after being identified. Those who are caught again will be cut off from supplies for a full year, he added in a statement posted on the Iranian Energy Ministry’s website.
If crypto mining is detected in facilities owned by state-run organizations or public institutions, those responsible will be penalized under the law and suspended from government work in the Islamic Republic, the report also revealed.
As it did last year, the Tehran government decided to restrict crypto mining in anticipation of increased power shortages during the hotter months when consumption for cooling rises; in June, Tavanir ordered licensed miners to halt work until the end of this summer. This seasonal ban evoked negative reactions from the local crypto community.
In 2021, licensed miners were ordered to shut down operations last May, partly due to power shortages and frequent power outages caused by increased power usage for both legal and illegal mining. They were allowed to resume operations in September, but were then told again to unplug their hardware due to increased heating demands during the cold winter months.
Iran legalized cryptocurrency mining as an industrial activity in July 2019. Since then, dozens of companies have applied for licenses from the Ministry of Industry and started minting coins with the low-cost energy provided by Iranian power plants.
However, since electricity sold to households is much cheaper, many Iranians have set up improvised mining facilities, adding to the load of the power generation industry. Iranian authorities are pursuing these miners and have uncovered about 7,000 underground crypto farms, according to a report released in May.
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