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Iran Cracks Down on Crypto Miners Using Household Electricity: Report

Iran Cracks Down on Crypto Miners Using Household Electricity: Report

Iran Cracks Down on Crypto Miners Using Household Electricity: Report

The measure comes as Iran suffers a shortage of hydropower in unusually dry conditions.

The measure comes as Iran suffers a shortage of hydropower in unusually dry conditions.

The measure comes as Iran suffers a shortage of hydropower in unusually dry conditions.

AccessTimeIconMay 17, 2021, 11:27 AM
Updated Aug 19, 2021, 9:26 AM

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Cryptocurrency miners in Iran who use household electricity for their operations will face heavy fines, according to the country’s energy ministry.

  • Furthermore, miners will have to pay for damages caused to the electricity network, a spokesman for the ministry said, as reported Sunday by English-language newspaper the Tehran Times.
  • The measure comes in response to concerns over the burden cryptocurrency mining is placing on the country’s electricity supply, which has been under strain this year thanks to reduced rainfall limiting the output of hydropower plants. 
  • Iran has attempted to boost its sanction-hit economy with crypto mining. The country contributed some 4% of the total global bitcoin hash power in 2020 according to research by the University of Cambridge’s Centre for Alternative Finance. 
  • However, the country’s government has attempted to keep miners on a short leash to manage the economic benefits within the scope of its electricity supply.
  • Mining facilities must register with the government, with owners being required to disclose their identities, the size of their farms and what kind of equipment they are using, per new directives issued last year.

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