Iran: Government fights with rewards against illegal crypto mining

Iran: Government fights with rewards against illegal crypto mining

In order to cope with the challenges in the energy sector, Iran, who struggles against an unprecedented heat wave and the associated shortage of electricity, took measures. The government has introduced a reward system to prevent the illegal mining of cryptocurrencies. This is essential because unregulated mining activities continue to put a strain on the already tense national power grid.

The threat from illegal mining

In the country, over 230,000 illegal mining systems have been discovered, the power consumption of which corresponds to that of the entire province of Markazi. These systems use the inexpensive electricity generated by fossil fuels, which contributes to a further load on the already overloaded power grid. Dubious actors, including Chinese companies, often operate large-scale mining projects that are operated with subsidized electricity. Apparently this happens with the tacit approval of the Iranian secret services and the revolutionary guard.

the state reaction

In order to combat the improper use of energy and restore the stability of the energy system, the Iranian government has advertised a bounty of one million tomans (approximately $ 20) for notification of non-authorized mining activities. The CEO of the state electricity company Tavanir expressed that the unauthorized use of electricity has caused a drastic increase in power consumption, which results in destabilization of the national power grid. The authorities have intensified the controls and confiscated illegal systems to counter the crisis.

an important step in energy policy

The situation in which Iran is located reflects a broader challenge in the energy sector of countries that depend heavily on fossil fuels. The ongoing power failures not only have a negative impact on industrial production that is already burdened by the state deficits, but also leads a light on the country's complicated relationships to cryptocurrencies. These are used both as a possibility of bypassing international sanctions and implementing illegal activities.

at a time when climate change and the need for sustainable energy sources are becoming increasingly pressing, Iran could face important decisions in energy policy and in dealing with new technologies. The reward for indications of illegal mining could be interpreted as part of a more comprehensive approach to ensure sustainable energy use.