Iran Tightens Penalties for Illegal Cryptocurrency Mining

Iranian authorities have increased fines for illegal cryptocurrency mining using subsidised electricity and introduced prison sentences for repeat offences, according to Tehran Times, citing a representative of the Ministry of Energy.

\”Any use of subsidised electricity intended for households, industrial, agricultural and commercial customers for mining cryptocurrencies is prohibited,\” said a representative of the ministry.

Officials say that miners’ activities strain electricity supplies, accelerate wear on the grid, and could damage ordinary users’ equipment.

The new rules also provide that violators may have their licences revoked for activities related to digital currencies mining. In addition, such entities will be obliged to compensate the damage they have caused to the grid.

Iran periodically imposes restrictions on cryptocurrency mining. In May 2021, President Hassan Rouhani announced a temporary ban on cryptocurrency mining due to an electricity shortage. Licensed facilities were allowed to resume operations in the autumn.

In December of the same year, state energy holding Tavanir ordered authorised miners to suspend operations.

Analysts at Elliptic say that cryptocurrency allows Iran to circumvent sanctions and to buy imported goods.

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