The Director of Government Sanctions for Tehran’s Provincial Counties has announced the confiscation of 80 smuggled mining rigs, imposing fines totaling over 150 million Toman on the offenders.
Authorities Crack Down on Illegal Cryptocurrency Mining Amid Concerns of Power Consumption
According to IDEA, Hamid Alghasi Mehr, the Director of Government Sanctions for Tehran’s Provincial Counties, said that 80 illegal mining rigs were seized in the second branch of the government sanctions office in Shahriar. In total, these smugglers have been fined an equivalent of 1,527,000,000 Iranian Rials, not only for the confiscated items but also for their illegal operations. These operations were uncovered in Shamsabad Industrial City.
This crackdown on illegal mining comes as concerns mount over the underground expansion of mining activities, posing issues like increased power consumption, capital flight, and a lack of transparency. Earlier, key players in the industry had warned about the underground migration of mining activities due to factors such as electricity pressure, currency outflow, and the government’s lack of attention to cabinet-approved mining resolutions. According to insiders in the mining industry, around 200 operational licenses have been issued in Iran, accounting for nearly 500 megawatts of electricity consumption, which is currently being supplied by recently established power plants.
Nonetheless, it appears that illegal mining activities continue to grow, as low electricity tariffs and cost-efficiency have made it a more attractive option compared to legal mining operations. According to the head of the Cryptocurrency Commission, the consumption from illegal mining activities in Iran has now reached 2,500 megawatts, primarily due to the lower operational costs of these unauthorized setups when contrasted with legal alternatives.
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