Iran to Increase Penalties for Unauthorized Cryptocurrency Mining

Iran has drafted new rules that increase penalties for illegal cryptocurrency mining in the country, including additional fines and imprisonment. “Any use of subsidized electricity to households, industrial, agricultural and commercial subscribers for cryptocurrency mining is prohibited.”

New fines for illegal cryptocurrency mining in Iran

An official at Iran’s Electricity Generation, Distribution and Transmission Company (Tavanir) said the country’s administration will approve new rules to increase penalties for unauthorized cryptocurrency mining, IRNA reported Sunday.

Mohammad Khodadadi Bohluli explained that under the new law:

Tougher penalties include increasing fines a minimum of three times and a maximum of five times, imprisonment of the violator and revocation of the business license.

“Any use of subsidized electricity for households, industrial, agricultural and commercial subscribers is prohibited for cryptocurrency mining,” Khodadadi said.

In 2019, the Iranian government approved cryptocurrency mining as an industry. In January 2020, the Ministry of Industry, Mines and Trade issued over 1,000 cryptocurrency mining licenses.

However, Iranian authorities have said that some unauthorized miners are using household electricity to mine cryptocurrency, causing serious problems for the country’s electricity industry. Last December, cryptocurrency miners were ordered to stop working to prevent winter blackouts. In September, authorities confiscated more than 220,000 mining machines and shut down about 6,000 illegal cryptocurrency mining farms across the country.

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