Iran Reinforces Penalties for Unlawful Cryptocurrency Mining
The Iranian government is contemplating a new law to increase penalties on unlicensed crypto mining using subsidized electricity, following reports of its adverse effects on the electricity industry and appliances.
Last year, the nation witnessed a ban on crypto mining for nearly four months due to blackouts in major cities. However, this ban did not affect the operations of the over 1,000 licensed cryptocurrency mining units present in the country.
President Hassan Rouhani revealed that around 85% of current miners in Iran are operating without a license. Unlicensed and unauthorized crypto mining units have been contributing to the degradation of the quality of the electricity supply in the national grid.
Misuse of subsidized electricity can cause damage to home appliances such as televisions, refrigerators, air conditioners, and others. The Iranian power generation and Transmission company, Tavanir, has warned about the potential risks associated with such practices.
The new regulation will apply to those who misuse subsidized electricity, and the punishment for violating the new law will include increased fines, imprisonment, and revocation of business licenses for repeated offenses.
The Iranian Energy Ministry's spokesman for the electricity sector, Mostafa Rajabi Mashhadi, previously warned unlicensed miners using subsidized electricity about heavy fines and compensations.
The growth in crypto mining in Iran is primarily due to extremely low-cost electricity. Numerous crypto mining firms have relocated or launched their businesses in Iran after getting approval for crypto mining activities in 2019.
However, the Iranian Ministry of Industry, Mine and Trade plans to increase penalties for illegal crypto-mining using subsidized electricity. This move is aimed at discouraging unauthorized activities and ensuring the sustainable use of the national grid.
Iranian Power units aim to capitalize further on this growing demand, with the government encouraging licensed crypto mining operations to contribute to the country's economic growth. It is crucial for all crypto miners to operate within the legal framework to maintain the stability of the electricity supply and protect household appliances.
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