THE DAILY ENCRYPT

October 3, 2022

Severe Consequence’s for Unlicensed Crypto Miners Says Iranian Power Provider

Iran's state-owned power distributor company, Tavanir has threatened to take more severe measures to discourage illegal crypto mining. These include higher penalties for those who...
person using MacBook Pro
Photo by Fabian Irsara

Iranian Power Utility Tavanir Vows Severe Measures Against Unlicensed Crypto Miners

Iran’s state-owned power distributor company, Tavanir has threatened to take more severe measures to discourage illegal crypto mining. These include higher penalties for those who mine digital currencies using subsidized electricity, and stiffer fines for officials who are involved in the mining.

To prevent cryptocurrency mining from being done outside of the law, Iran Power Generation, Transmission and Distribution Company has taken new, more severe measures. Mostafa Rajabi Masshhadi, spokesperson for the utility, announced that the penalty for illegal activity in this sector has been raised by 400%. He elaborated on the matter in an interview with Financial Tribune (English-language Iranian edition).

The electricity rates for unlicensed crypto miners are four times more than the export rates, which are already higher than the subsidized rates for households.

Mashhadi stated that the first time offenders would be denied access to subsidized electricity, natural gas, and liquid fuels for three months from the moment they are identified. In a statement on the Iranian Ministry of Energy’s website, Mashhadi stated that those who are caught again will be denied access to subsidized energy for a full one year.

Related Articles:  Bitcoin Mining Firm Merkle Has Increased its Hashrate by 900% in a 8 Months

The report revealed that crypto mining will be detected in facilities owned by public institutions or state-run organisations. Those responsible will face criminal penalties and their jobs as government officials in the Islamic Republic will be suspended.

The government of Tehran has taken the decision to limit crypto mining. This is similar to last year. They expect the power shortage to rise during hot months when cooling demand increases. Tavanir in June ordered licensed miners to cease operations until the summer ends. The local crypto community had negative reactions to the seasonal ban.

Electricity shortages and frequent blackouts in 2021 were partly due to the increased power consumption for mining — both legal, and illegal. Last May, licensed miners were ordered to close down . After being allowed to resume operation in September, ordered them to unplug their equipment due to the increased heating demand during winter months.

Related Articles:  Wells Fargo Issues Profit Warning for Coinbase - Stock Sinks 9%

In July 2019, Iran legalized cryptocurrency mining. Numerous companies applied for licenses from the Ministry of Industry since then and began minting coins using the low-cost energy provided by Iranian power stations.

Many Iranians have set-up improvised mining facilities to increase the load on the power generation sector, since electricity is cheaper. These miners have been being pursued by Iranian authorities, and a May report claims that nearly 7000 underground crypto farms were busted.

If you want to know more about the latest news on Crypto, Blockchain and Bitcoin Visit The Daily Encrypt

 

Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".
Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Latest News
PRESS RELEASES