Iranian law enforcement agencies confiscated 3,000 mining machines in the past week as part of their fight against illegal cryptocurrency mining businesses.
Iranian authorities confiscated 3,000 computing machines used to mine cryptocurrencies within the last seven days as part of the massive fight against illegal crypto mining amid power shortages and increased number of blackouts. 500 mining rigs were found in Tehran province, another 600 computers were confiscated in Kerman province, reported the Iranian Electricity Generation, Distribution and Transmission Company (Tavanir), which is quoted by the Financial Tribune. According to the report, illegal mining farms were also found in the provinces of Khuzestan, Mazandaran, Qom and Bushehr.
Over the past year, Iranian law enforcement agencies suppressed the activities of 183 illegal mining farms operating without a license in Tehran province alone. More than 11,000 mining machines were confiscated in Tehran province over the year.
Energy distribution company Tavanir estimates that unlicensed mining farms in Iran consume about 2,000 MW every day. For comparison, licensed mining companies consume only 300 MW per day. In April 2021, the electricity bill for miners was increased to 16,574 Iranian rials ($0.39) per kilowatt hour (kWh). It is four-bold higher than tariffs for the Iranian population.
Iran is facing an electricity shortage this year due to low rainfall and rising electricity demand. The country’s electricity shortage was estimated at 5,000 MW during peak hours. In May, Iranian President Hassan Rouhani announced a temporary ban on mining enterprises until September 2021.