Iran's cryptocurrency mining industry is facing a large-scale illegal mining crisis, with authorities estimating that over 95% of the 427,000 active mining devices in the country are operating without authorization.
The CEO of the Tehran Province Electricity Distribution Company, Akbar Hasan Beklou, stated on Sunday that Iran has become the world's fourth-largest cryptocurrency mining center, thanks to the heavily subsidized electricity prices, making it a "paradise for illegal miners."
These unlicensed operations consume over 1,400 megawatts of round-the-clock electricity, putting immense pressure on the national power grid and threatening the stability of electricity supply.
Beklou pointed out that most illegal miners disguise their activities as industrial facilities to obtain cheaper electricity.
Authorities have intensified their crackdown on illegal operations. In Tehran Province alone, 104 unauthorized mining farms have been shut down, and 1,465 machines have been confiscated, equivalent to the electricity consumption of nearly 10,000 households, Beklou said.
The government has identified several hotspots for illegal mining, including Pakdasht, Malard, Shahre Qods, and industrial areas in southwestern Tehran. Inspectors have discovered farms hidden in underground tunnels, as well as factories using subsidized electricity connections to evade detection.
Beklou stated that specialized inspection teams are working with law enforcement to dismantle these operations.
In August, Iran announced cash rewards for citizens who report illegal cryptocurrency mining operations. Mostafa Rajabi Mashhadi, CEO of the state-owned utility company Tavanir, announced that whistleblowers would receive 1 million tomans (approximately $24) for each unauthorized mining device reported.
According to a report by CoinLaw in June, Iran ranks fifth in the global Bitcoin (BTC) hash rate distribution, contributing 4.2% of the total network hash rate. The United States leads with a dominant 44%, followed by Kazakhstan (12%), Russia (10.5%), and Canada (9%).
Related: The Bitcoin (BTC) mining industry is transforming into AI data centers through an $11 billion convertible bond financing boom.
Original article: “Iranian officials claim that 95% of the country's 427,000 active cryptocurrency mining devices are operating illegally”
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