Iran's energy chief says 95% of the country's 427,000 cryptocurrency mining rigs are operating illegally, consuming huge amounts of electricity and destabilizing the national grid.
Iran's cryptocurrency mining industry is facing a widespread illegal mining crisis, with authorities estimating that more than 95% of the country's 427,000 active mining rigs are operating without a license.
Iran has become the world’s fourth-largest cryptocurrency mining hub, fueled by the country’s heavily subsidized electricity prices, making it a “haven for illegal miners,” Akbar Hasan Beklou, CEO of Tehran Province Electricity Distribution Company, said on Sunday.
These unlicensed operations consume more than 1,400 megawatts of electricity around the clock, putting huge pressure on the national grid and threatening the stability of power supplies.
Beklou noted that most illegal miners disguise their operations as industrial facilities to access cheaper electricity.
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Iran shuts down 104 illegal cryptocurrency farms
Authorities have stepped up their crackdown on illegal mining. In Tehran province alone, 104 illegal mining facilities have been shut down and 1,465 machines confiscated, equivalent to the electricity consumption of nearly 10,000 households, Mr. Beklou said.
The government has identified several hotspots for illegal mining, including Pakdasht, Malard, Shahre Qods and industrial zones southwest of Tehran. Inspectors have found farms hidden in underground tunnels and factories using subsidized power lines to avoid detection.
Beklou said specialized inspection teams are working with law enforcement to disrupt these operations.
Iran offers rewards to citizens who report illegal mining activities
In August, Iran announced that it would offer cash rewards to citizens who report illegal cryptocurrency mining operations. The CEO of state-owned utility Tavanir, Mostafa Rajabi Mashhadi, said that informants would receive 1 million tomans (about $24) for each reported illegal mining device.
According to CoinLaw's June report, Iran ranked fifth globally in Bitcoin hashrate allocation, contributing 4.2% of the network's total computing power. The United States led with 44%, followed by Kazakhstan (12%), Russia (10.5%), and Canada (9%).
Source: Cointelegraph
