Iran takes action against crypto miner because the demand for electricity is increasing

Iran takes action against crypto miner because the demand for electricity is increasing

Iran will switch off the power supply of all of its 118 licensed crypto mining centers from June 22, since the summer temperatures raise the electricity requirement, said the spokesman for the Energy Ministry, Mostafa Rajabi Mashhadi, according to A Bloomberg Report.

The country's energy requirements always reach new highs, the Ministry said. "According to forecasts, the need for consumption will exceed 63,000 megawatts this week, which means that we have to restrict the power supply," said Rajabi Mashhadi said in an interview that was translated into English.

This is the third time that Iran exposed local crypto mining activities last year to prevent power outages. The government before operation discontinued in winter and summer 2021 Electricity problems.

The Iranian government officially Cryptocurrency mining as a legitimate business activity in 2019 and exhibited to bring heavily sanctioned land. Miner must pay a tax on your electricity and sell your mined cryptos to the Iranian central bank .

Nevertheless, cheap electricity attracted local mining workers. According to the Cambridge Center for Alternative Finance (CCAF), Iran's Bitcoin mining made 6.9 % of the total Bitcoin Hash rate in June 2021 and is therefore conveniently among the top 10 Bitcoin mining countries in the world.

At the same time, increasing cases of illegal Bitcoin mining in Iran have led to an official examination. Iranian police Reuters reported illegal cryptocurrency farm in June 2021.

It is also becoming increasingly common for Iranians to break down Bitcoin by using the country's subsidized budgetary stream. According to a blockchain analytics company, online pictures of mining machines have appeared that run in a mosque and receive free electricity in Iran Elliptisch .

"Access to network -independent current and geographically scattered, small businesses are among the most important means used by sub -deaf people to hide their companies from the authorities and to avoid the ban", ccaf said in an analysis.

Between 2015 and 2021 Bitcoin-Mining flowed more than $ 186 million in Iranian cryptocurrency services, a showed. The report also found that illegal Bitcoin miners made around 85 % of the cryptocurrency activities in the country.

mining the activities in the country seem to have decreased. By January 2022, Iran, according to the information, only made 0.2 % of the global hash rate out of Cambridge Bitcoin power consumption index. Increasing the penalties for illegal crypto mining using subsidized electricity, including rising fines by at least three times and at most the five times and the detention of the perpetrator Local media .

unauthorized crypto mining "Activities are a threat to the country's energy security, they add enormous damage to the national power grid ... and therefore the consequences must be in relation to the damage." said Mohammad Khodadadi Bohlouli The power supply for legal crypto mining centers at the Iran Power Generation and Transmission Company or Tavanir is responsible.

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The contribution "Iran Cracks Down on Crypto Miners As Electricity Demand Surges" is not a financial advice.