Iran confirms seizure of 240,000 mining units in three years

Iranian authorities have confirmed the seizure of around 240,000 cryptocurrency mining rigs over the past three years, state-owned electricity company Tavanir said on Sunday, expressing dissatisfaction with the current state of the country's power grid.

Iran has reportedly been facing power shortages and grid instability for months, raising concerns among senior officials. Tavanir CEO Mostafa Rajabi Mashhadi noted that the confiscated cryptocurrency mining rigs used electricity equivalent to about 800 megawatts.

In his comments, Mashhadi compared the power consumption of mining installations with the capacity of the Bushehr nuclear power plant, which he estimates at 1,000 megawatts. He stressed that activities such as mining put pressure on the country's national grid as Iran continues to face a worsening energy crisis.

Despite being one of the world’s leading suppliers of natural gas and oil, Iran has found itself in the midst of a severe energy crisis. The country imposed electricity rationing in December, government offices operated on reduced hours or were closed, and schools and colleges moved much of their operations online. Many places, including shopping malls and highways, were often left in the dark amid worsening energy problems.

Iran confirms illegal mining activity

In his statement, Mashhadi noted that the country continues to struggle with the problem of illegal use of the electricity grid by residents despite acute energy problems. “Unfortunately, illegal use of the electricity grid still occurs in the country,” Mashhadi said. He also called on the Economic Security Police to provide active cooperation to identify the remaining illegal miners.

Under Iranian law, anyone caught with illegal and unregistered cryptocurrency mining equipment will be prosecuted, resulting in the confiscation of the devices and a fine of up to three times the value of the illegal equipment. According to Tavanir, the country’s deputy for transmission and foreign trade, there are still around 700,000 illegal miners.

The MP pointed out that these devices consume at least 2,000 megawatts of electricity. He also stressed that the situation is worsening as factors such as rising temperatures and industrial activities also continue to put pressure on the national grid. In a previous statement, Ali Nikbakht, Chairman of Iran Power Plants Trade Association, noted that the country is expected to have an electricity deficit of 25,000 megawatts by next year, which is a third of the total consumption.

While Iran continues to confiscate mining rigs, the country also has a complicated relationship with cryptocurrencies. The Central Bank of Iran (CBI) has now banned the conversion of fiat currency into cryptocurrency, prohibiting the country’s main electronic payment system, Shaparak, from providing such services. The decision was made to combat the depreciation of the local currency and the economic damage.

A ban on deposits and withdrawals from exchanges was also imposed after the country's currency lost 37% of its value against the US dollar. Around a million Iranians have reportedly been unable to access crypto services in recent days.

However, despite these bans, the CBI is taking steps to regulate the digital asset space, releasing a report titled “Cryptocurrency Policy and Regulatory Framework” in December 2024. While the initiative is a step in the right direction, it includes invasive requirements requiring platforms to share traders’ personal information with the government. Despite protests from the Iranian Fintech Association against the move, the future of asset regulation in the country remains uncertain.

Source: cryptonews.net