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Iran’s cryptocurrency mining sector is encountering a widespread unlawful mining crisis, with officials estimating that over 95% of the nation’s 427,000 operational mining devices are functioning without permission.
Akbar Hasan Beklou, CEO of the Tehran Province Electricity Distribution Company, stated on Sunday that Iran has ascended to the world’s fourth-largest cryptocurrency mining center, propelled by the nation’s heavily subsidized electricity costs, which have turned it into a “utopia for illicit miners.”
These unauthorized operations utilize more than 1,400 megawatts of electricity continuously, exerting tremendous strain on the national electrical grid and jeopardizing the reliability of power supplies.
Beklou remarked that the majority of illegal miners masquerade their operations as industrial sites to obtain lower energy rates.
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Iran shuts down 104 illegal crypto farms
Officials have escalated their efforts against unauthorized operations. In Tehran Province alone, 104 unlicensed mining farms have been closed, with 1,465 machines confiscated, which is equivalent to the energy consumption of nearly 10,000 households, Beklou indicated.
The government has pinpointed several hotspots for unlawful mining, including Pakdasht, Malard, Shahre Qods, and industrial sectors in southwestern Tehran. Inspectors have revealed farms concealed within subterranean tunnels and factories employing subsidized power connections to avoid detection.
Beklou expressed that specialized inspection teams are collaborating with law enforcement to dismantle these operations.
Related: Afghanistan internet outage ’a warning sign’ for blockchain decentralization
Iran offers bounties to citizens reporting illegal mining
In August, Iran revealed that it is providing monetary incentives to citizens who report unlawful cryptocurrency mining operations. The CEO of state-operated utility Tavanir, Mostafa Rajabi Mashhadi, announced that informants will earn 1 million toman (roughly $24) for each unlicensed mining device reported.
According to a June report by CoinLaw, Iran stands fifth globally in Bitcoin (BTC) hashrate distribution, contributing 4.2% of the overall network’s computing capability. The United States leads with a commanding 44%, followed by Kazakhstan (12%), Russia (10.5%), and Canada (9%).
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