Over the last three years, Iranian authorities have confiscated about 240,000 cryptocurrency mining rigs, confirmed by the state electric company Tavanir amid ongoing power shortages.
Mining and Energy Crisis in Iran
Reports indicate that Iran has been experiencing power shortages and network instability in recent months. The CEO of Tavanir, Mostafa Rajabi Mashhadi, stated that the confiscated mining rigs consumed around 800 megawatts of electricity, comparable to the 1000 megawatt capacity of the Bushehr nuclear power plant. Such mining activities strain the national grid, especially as Iran deals with a worsening energy crisis.
Illegal Mining Operations Persist
Mashhadi mentioned the continuous illegal use of the electricity network for mining, despite the critical energy situation. Iran's law mandates the confiscation of unregistered mining equipment and fines up to three times the equipment's value. Tavanir's deputy estimated around 700,000 machines consuming 2000 megawatts are still present in the country.
Cryptocurrency Bans and Initiatives
The Central Bank of Iran banned fiat-to-crypto conversions and operations through the country's main electronic payment network. This was aimed at stabilizing the national currency after its 37% decline against the US dollar. Despite the ban, CBI is working on regulatory frameworks for the crypto sector.
Iran continues to combat illegal mining operations and explore regulatory measures for cryptocurrencies, amid an energy crisis and economic challenges.
