Iran’s state-owned power distribution company, Tavanir, has threatened harsher measures to discourage unauthorized crypto mining. They include higher penalties for officials who are involved in mining and subsidized electricity, as well as increased fines for minters of digital currency.
Tavanir Raises Fines for Illegal Cryptocurrency Mining
New, harsher measures have been taken by the Iran Power Generation, Transmission and Distribution Company, Tavanir, to stop crypto miners from breaking the law. The utility’s spokesman Mostafa Rajabi Mashhadi announced that fines for illegal activities in the sector have been increased by 400%. The English-language Iranian Financial Tribune quoted him as saying:
The electricity rates for unlicensed cryptominers are four times more than those charged by export tariffs, which are higher than rates paid to households.
Mashhadi stated that the first time offenders would be barred from accessing subsidized energy for three months following their identification. The official also stated in an announcement published by the Iranian Ministry of Energy that anyone who is caught again, will be denied access to subsidized electricity for up to a year.
The report revealed that crypto mining will not be allowed in facilities controlled by public institutions or state-run organisations. Those responsible will face severe penalties and their jobs as government officials in the Islamic Republic will be terminated.
Iran’s government has taken similar steps to last year and decided to ban crypto mining. It expects that the power gap will increase in the summer when the consumption of cooling products rises. Tavanir in June ordered that licensed miners cease operations for the remainder of summer. This ban caused negative reactions in the crypto community.
In 2021, electricity shortages and frequent blackouts were partially blamed on the increased power usage for mining — both legal and illegal — and last May licensed miners were ordered to shut down. In September, they were permitted to resume operation. However, in October, the government ordered them to turn off their heating equipment due to increased heating demand.
Iran approved cryptocurrency mining in July 2019 as an industrial operation. Many companies have since applied for permits from the Ministry of Industry, and they’ve started to mint coins with low-cost energy provided by Iranian power plants.
Many Iranians are now setting up mining gangs to increase the demand for electricity. Iranian authorities are pursuing these miners, and according to a May report, they have busted close to 7,000 underground cryptocurrency farms.
What do you think of Iranian authorities continuing to clamp down cryptocurrency mining? Comment below.
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