Iran’s national energy holding company Tavanir suspended operations at 1,100 mining farms whose owners did not apply for a cryptocurrency mining licence. Sources within the agency received 100 million rials ($2,400) as a reward. Financial Tribune, citing local media, reports this.
The head of the organisation, Mostafa Rajabi Mashhadi, stated that the crackdown on unauthorised mining farms prior to the introduction of the reward system for their detection had limited success. According to him, the energy company does not always manage to detect them on its own “by analysing the consumption structure”.
Mining was legalised in Iran last summer. However, not all participants were satisfied with the proposed licences and they switched to subsidised electricity.
The head of Tavanir noted that some miners resorted to tricks, installing their equipment at energy-intensive industrial and agricultural facilities, which up to a certain point allowed them to evade detection.
According to the publication, at present the country has issued 624 licences for cryptocurrency mining. At the same time, some of them have ceased operations. In July 2020, the Iranian government required cryptocurrency miners operating in the country to register within a month, disclosing their identity, type and quantity of installed equipment.
According to official data, mining farms in Iran pay for electricity at 4,800 rials ($0.01) per kilowatt-hour. In the peak of the summer season from June to September the tariff rises to 19,300 rials ($0.05), or twice the export price of electricity.
In July, the Tavanir holding proposed reducing the summer tariff by 47% in exchange for miners’ participation in energy-efficiency projects, notably the replacement of 1 million morally and physically obsolete air conditioners.
In late July, Iranian power plants were allowed to operate with Bitcoin mining and other cryptocurrency centres provided they hold a licence and “comply with the established tariffs”.
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