14 more illegal mining farms closed in Iran

In the fight against illegal mining, the Iranian authorities, together with the state energy company Tavanir, identified 14 illegal mining farms last week.

According to Bitcoin.com, unregistered mining farms in Tehran, East Azerbaijan, Isfahan and Khuzestan were discovered during the raid. In the basements of residential buildings, 277 pieces of equipment for mining cryptocurrencies were installed. The devices were confiscated and their owners were charged with illegal mining.

Recall that in May, the President of Iran signed a ban on the operation of mining companies in connection with the overload of electrical networks. In September, restrictions on licensed miners were lifted. At the same time, it was reported that the country’s authorities closed more than 5,000 illegal mining farms. One of these farms was discovered in the basement of the Tehran Stock Exchange.

This year, Iran’s Prosecutor General’s Office banned the use of confiscated equipment until parliament decides how to deal with unregistered miners and their owners. Tavanir recently warned of possible power outages during the winter months when electricity demand increases:

“Increased demand for electricity from illegal miners could cause power outages in the winter, when gas consumption is also at its peak, as happened in the summer.”

Tavanir said the current penalties are not tough enough to scare off illegal miners and called for stricter measures. The fact is that the difference in electricity tariffs for legal entities and individuals has led to the emergence of illegal mining farms throughout the Islamic Republic. According to Tavanir, licensed companies consume about 400 MW each day, while unregistered miners consume 2,000 MW.

The situation with illegal mining in Iran is very tense. After the Iranian government legalized mining in 2019, only 50 companies received permission to do this activity.