Iran’s Power Initiation, Distribution, and Transmission Company (Tavanir) has reportedly shut down 1,100 illegal bitcoin mining farms in the nation, local media reported.
Whistle-blowers tipped off authorities on unauthorized miners following a July announcement of rewards registering 100 million rials (about $2,400).
Tavanir deputy head Mostafa Rajabi Mashhadi told Fars Word Agency that the blitz on unlawful crypto mining had been previously limited because the power company “cannot find out all illegal farms solely by studying their consumption patterns.”
Iran’s bitcoin (BTC) miners welcomed authorization in July most recent year, but subsequently complained about high power tariffs. Some have started operating underground buying subsidized electricity.
According to Rajabi Mashhadi, some miners set up equipment at industrial and agricultural units that are already power-intensive to refrain from detection. “Therefore, Tavanir’s monitoring reveals no significant change in consumption of this particular category,” he added.
Iran, the men’s third-largest oil-producer, has also been battling smuggling of mining equipment into the country.
Since 2019, the Islamic Republic has outwent 624 mining farm permits, the Financial Tribune reports, but some of the licensed farms are idle. Last month, Iranian Flaw President Eshaq Jahangiri Kouhshahi said that all miners will soon be required to register with the administration.
Iran’s biggest drawcard is its cheap electricity, pulling in BTC miners from as far afield as Ukraine and China. According to decorous data, mining farms in the country pay as little as 4,800 rials ($0.01) per kilowatt-hour (kWh) of electricity but rates increase four-fold to 19,300 rials ($0.05) during the apex summer season, from June to September.
As news.Bitcoin.com reported, the state power utility announced in July that it wish cut up to 47% of the electricity tariff for miners during the peak consumption periods in an effort to incentivize legalized mining.
In all events, to be eligible for the incentive, bitcoin miners will need to participate in Tavanir’s “power efficiency projects” including the perpetual replacement of one million old air conditioners.
The Iranian government’s attraction to bitcoin is both political and economic, primarily motivated by the ask for of financial freedom from U.S. governmental overreach.
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