1. Crackdown on Illegal Mining
2. Impact of Mining on Iran’s Power Grid
3. Complex Relationship with Cryptocurrencies

Amid a historic heatwave and severe power shortages, Iran is intensifying its crackdown on illegal cryptocurrency mining, claiming it exacerbates the country’s electricity crisis.

Crackdown on Illegal Mining

The Iranian government is offering bounties to citizens who report unauthorized mining activities to manage the power grid and maintain industrial production. Authorities have confiscated over 230,000 illegal mining devices consuming electricity equivalent to 800-900 megawatts.

Impact of Mining on Iran’s Power Grid

To supply the amount of electricity consumed by the confiscated devices, a 1,300-megawatt power plant would be required. Iran faces its most severe heatwave in 50 years, with frequent power outages crippling industrial production across the country.

Complex Relationship with Cryptocurrencies

Iranian authorities have a complex relationship with cryptocurrencies. Digital assets have been used to obscure trade and evade sanctions, while also enabling illicit activities. Reports suggest influential networks and some Chinese companies have established large-scale mining operations in Iran.

The government's aggressive stance against illegal crypto mining underscores the tension between managing energy resources and the economic pressures driving unauthorized mining activities.