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 operating mining devices are operating without a license.
Akbar Hasan Bekr, CEO of Tehran Provincial Electricity Distribution Company, said on Sunday that Iran has become the world’s fourth-largest cryptocurrency mining hub due to heavily subsidized electricity prices, making the country a “paradise for illegal miners”.
These unauthorized operations consume more than 1,400 megawatts of electricity 24 hours a day, putting tremendous pressure on the national power grid and threatening the stability of power supply.
Beklu pointed out that many illegal miners disguise their operations as industrial facilities in order to take advantage of cheaper electricity.
Bitcoin mining costs in Iran are low. sauce: bitcoin archive
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Iran shuts down 104 illegal cryptocurrency farms
Authorities are stepping up crackdowns on illegal fishing. In Tehran province alone, 104 unlicensed mines were closed and 1,465 machines were seized, equivalent to the electricity use of about 10,000 households, Beklu said.
The government has identified several hotspots for illegal mining, including Pakdasht, Mallard, Shahre Quds, and the industrial areas southwest of Tehran. Inspectors discovered farms hidden in underground tunnels and factories that used subsidized electricity connections to evade detection.
Beklu said specialized inspection teams are working with law enforcement to dismantle these operations.
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Iran offers rewards to citizens who report illegal mining
In August, Iran announced it would offer bounties to citizens who report illegal cryptocurrency mining activities. Mostafa Rajavi Mashhadi, CEO of state-run electricity company Tavanir, announced that informants would receive 1 million tomans (about $24) for each illegal mining rig reported.
According to CoinLaw’s June report, Iran ranks fifth in the world for Bitcoin (BTC) hashrate distribution, accounting for 4.2% of the network’s total computing power. The United States leads the way with 44%, followed by Kazakhstan (12%), Russia (10.5%), and Canada (9%).
Iran ranks fifth in the world in terms of Bitcoin hashrate distribution. Source: CoinLaw
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