Komal Joshi · Oct 21, 2020 . 6min read
Iran’s Tavanir Closes 1100 Illegal Crypto Mining Farms
Iran’s power utility company Power Generation, Distribution, and Transmission Company Tavanir siezes 1,100 unlicensed crypto mining farms.
By Komal Joshi · Aug 25, 2020 . 6min read
Cryptocurrency mining is a power-intensive activity. Several countries implement stringent monitoring on Bitcoin mining farms. According to Financial Tribune, Iran’s power utility company Power Generation, Distribution, and Transmission Company (Tavanir) declared that it had closed 1,100 unlicensed crypto mining farms. The illegally working farms were recognized with the help of whistleblowers.
Tavanir declared in July that it would provide rewards to whistleblowers that could find unauthorized cryptocurrency miners. According to Bitcoin.com, the utility firm offered rewards of up to 100 million Iranian rials. It would offer approximately $2,400, to whistleblowers who help energy officials identify illegally operating Bitcoin mining farms.
Speaking to Fars News Agency, Tavanir deputy head Mostafa Rajabi Mashhadi reported that their campaign against illegal farms was earlier restricted. The confinement occurred due to their failure to recognize them based on their energy consumption patterns. Mashhadi also declared that some crypto miners would establish their equipment in industrial and agricultural units with high usage of subsidized electricity. “Therefore, Tavanir’s monitoring reveals no significant change in consumption of this particular category,” he said.
Scope of Cryptocurrency Mining in Iran
The government said it would acknowledge cryptocurrency mining as a legal industry in July 2019. Miners first welcomed this as an optimistic move. However, many grumbled about high power tariffs. Later they concealed their profitable illegal operations and went undercover to cheat utility companies.
“High electricity tariffs plus stringent regulations have made the sector less appealing for small investors,” Iran’s ICT Guild Organization official Amir Hossein Saeedi Naeini said. He added that “the operating conditions in this industry should not be such that only large capitalists enter the cryptocurrency mining market but that all miners can operate.”
Since 2019, the Islamic Republic has issued 624 mining farm permits, the Monetary Tribune reports. However, many licensed farms are ideal. Iran is a sought-after destination for BTC miners. It offers cheap electricity. It resulted in miners from as far as China and Ukraine to establish businesses in the oil-rich country. Iran, crypto mining firm, spends only as little as 4,800 rials or $0.01 per kWh. However, it spends approx 19,300 rials or $0.05 through the summer season, which lasts from June until September.
Follow Cryptodose for more updates.