Since Iran began recognizing cryptocurrency mining as an industry, it has shut down 1,620 unauthorized crypto mining farms
According to news from the Financial Tribune, it appears that Iran has begun to close the 1,620 unauthorized cryptocurrency mining farms. This is really good news because it is a sign that mining cryptocurrency is a real industry. And this move started to happen when the Bitcoin price made new all-time highs.
1,620 cryptocurrency mining farms closed in Iran
Iranian authorities announced it had closed 1,620 illegal crypto mining farms since the country started recognizing cryptocurrency mining as a legal industry in July 2019. Multiple mining farms Unauthorized crypto mining was identified in December when Bitcoin crossed its all-time high.
Mostafa Rajabi Mashhadi, the spokesperson for Power Generation, Distribution and Transmission (Tavanir), said:
“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.”
In July 2019, the Iranian government said it would recognize cryptocurrency mining as a legitimate industry. The publication noted that the miners initially welcomed the move but later deemed the price of electricity too high and lowered their business.
Tavanir is legally authorized to shut down illegal crypto mining businesses, the news agency added that so far there have been a total of 24 crypto mining farms using 310 MW have been approved by the Ministry of Industries, Mining, and Trade so far.
The Iranian Energy Ministry explained that the electricity bills for miners are based on average power export rates and the country’s Forex Management Integrated System (Nima).
The news stated:
“Miners are charged 4,800 rials for one kilowatt-hour that is half the electricity export rate in autumn, winter, and spring. However, billings are planned to be based on 19,300 rials/kw, twice the price for exported electricity in summer (June to Sept).”
The justice agency reported a leap in court lawsuits related to illegal cryptocurrency mining in December, and nearly 500 crypto mining farms have been identified with the help of whistleblowers. They are endowed, including a 100 million rials reward, for helping energy officials identify illegal crypto mining farms.
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