Iranian officials shut down over 1600 crypto mining farms in the last 18 months.

Iranian authorities have shut down over 1,600 crypto mining farms for stealing electricity in the past 18 months, a new report has revealed.

According to the local newspaper Financial Tribune report, Iranian authorities have shut down over 1,600 block reward mining farms in the past 18 months. The shutdowns started when Iran recognized mining as a legitimate industry, surging in December 2020 when most digital currencies recorded huge price spikes. The report indicates that the 1620 illegal crypto mining farms were using 250 megawatts of electricity. For most, their crime was using the subsidized electricity that Iran provides for domestic use. 

 

Iran continues to crackdown on illegal crypto mining farms.

Speaking to the state broadcaster, a spokesperson for Iran’s Power Generation, Distribution and Transmission Company (Tavanir) reiterated that the company would keep on cracking down on these illegal farms. He stated, “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.” As reported earlier, Iran first recognized block reward mining in July 2019. Miners had to obtain the proper authorization from the government to conduct operations.

 

Crypto miners continue to indulge in power theft. 

When legalizing the crypto mining industry, the Iranian government hoped it would boost the economy and raise more taxes. Block reward miners initially welcomed the move. However, according to the Financial Tribune report, this changed quickly after miners realized how high the miners’ electricity tariffs were. To evade these tariffs, they went underground with their operations. Power companies, together with authorities, have been hunting them down since then. Tavanir, whose power most of the crypto miners have been stealing, is authorized to shut down such illegal operations, the report notes.

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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