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According to Mostafa Rajabi, a spokesperson for Iran’s Energy Ministry, cryptocurrency miners who use household electricity in Iran would face a “heavy fine.”
According to Rajabi, cryptocurrency mining is one of the two major challenges to Iran’s energy supply this year, together with a decrease in power from hydropower plants due to a lack of weather.
In the wake of these worries, the Iranian government is cracking down on illegal mining that uses household electricity. The mining industry is heavily dependent on Iran’s power grid, putting a strain on the country’s power supply. Rajabi also said that the practise could result in nationwide blackouts.
In addition to the “heavy fine” imposed on miners who use household power, those found would be forced to pay compensation for the harm they do to the country’s electricity supply.
The change is the latest in a series of measures taken to monitor Iran’s cryptocurrency mining industry.
Crypto mining in Iran
In 2019, Iran legalised commercial blockchain mining. At the time, Iranian ministers estimated that the industry could generate more than $8.5 billion per year.
Many see the move as a way to increase state revenue in the face of tough economic sanctions imposed as part of former President Trump’s “maximum pressure” Iran policy.
By October of last year, the industry had grown to the point that the Central Bank of Iran proposed new legislation directing the revenues of Iranian-mined Bitcoin into government funds, allowing Iran to finance imports.
Nonetheless, amid its embrace of Bitcoin mining, Iran has constantly failed to balance the industry’s needs with the country’s overall electricity demands.
Iran’s initial crypto mining law prevented miners from working during peak power hours, and the government has never permitted mining using subsidised resources.