Iranian Power Utility Tavanir Vows Severe Measures Against Unlicensed Crypto Miners – To stop cryptocurrency mining outside the law, the Iran Power Generation, Transmission and Distribution Company (Tavanir) has implemented new, stricter procedures. According to the utility’s spokesman Mostafa Rajabi Mashhadi, fines for illicit activity in the industry have climbed by 400%.
He explained, as reported by the Financial Tribune in English, in Iran:
“Unlicensed crypto miners are required to pay electricity bills that are four times more expensive than export rates, which are already more expensive than subsidized household tariffs.”
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Mashhadi further stated that first-time offenders will be prohibited from using subsidized energy for three months following their identification, including electricity, natural gas, and liquid fuels. In a statement posted on the website of the Iranian Ministry of Energy, the official stated that individuals who are caught again will have their supply shut off for a whole year.
According to the report, if crypto mining is discovered in locations held by state-run businesses or public institutions, those guilty will face legal consequences and lose their government employment.
Similar to previous year, the Iranian government has decided to impose restrictions on cryptocurrency mining because it anticipates a worsening of the power shortage over the summer when cooling costs rise. Tavanir instructed authorized miners to cease activities until the conclusion of the current summer in June. The neighborhood crypto community had harsh reactions to the seasonal prohibition.
Due to growing power use for mining, both legal and illicit, in 2021, electricity shortages and frequent blackouts were partially attributed to this, and in May of last year, licensed miners were ordered to cease operations. In September, they were given permission to operate once more, but as the cold winter months increased demand for heating, they were once more instructed to unplug their equipment.
In July 2019, Iran approved cryptocurrency mining as an industrial endeavor. Since then, other businesses have submitted license requests to the Ministry of Industry and have begun minting coins using the cheap electricity provided by Iranian power plants.
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However, because the electricity delivered to homes is so much less expensive, many Iranians have installed improvised mining facilities, adding to the demand on the sector that produces electricity. According to a report from May, Iranian officials have been pursuing these miners and have destroyed around 7,000 underground crypto farms.
