Iran Energy Ministry Issues Fines for Crypto Miners Using Household Electricity

News / 18.05.2021

According to Tehran Times, Iran Energy Ministry spokesman Mostafa Rajabi stated that cryptocurrency miners using household electricity in Iran would face a “heavy fine.”

Besides the “heavy fine,” those captured by the government will also pay for the harm to the electricity supply in the country. Crypto mining is one of Iran’s two most significant electricity threats this year. As has reduced the power produced by hydropower plants due to lack of rain, Rajabi added.

In light of these questions, the government of Iran is tackling unauthorized household electricity mining. The mining industry relies heavily on Iran’s power grid and therefore demands on the national energy supply. Rajabi added that the practice could also lead to countrywide blackouts.

This move is the latest in regulating Iran’s cryptocurrency mining industry in a long line of measures. It is worth noting that it was in July 2020 when the government permitted power plants to mine for cryptocurrencies.

Emphasis on Energy-efficient Mining Methods

With the Iran announcement, there also came up mining information about other countries. Although some have turned to hydroelectricity, such as regions within China, a hub for crypto mining, others have other ideas, such as the United States. This report is based on an article, ‘flared natural gas.’

EZ Blockchain has been reported in the United States of shipping containers with hundreds of computers cryptocurrency. They are all fuelled by natural flared gas. However, the study reveals that natural gas does not eliminate the harmful emissions of carbon.

According to the data, the annual carbon footprint for cryptocurrency mining is about 37 million tons of carbon emissions.

Companies tried to use renewable sources of energy to maintain their mining activities, respecting the environment. This year, there were already two big joint ventures announced. The first was Argo Blockchain PLC, which announced its partnership in March with DMG Blockchain Solutions at Terra Pool.

They said that it would be the first mining pool for Bitcoin (BTC) to be operated with clean energy.

A month later came the second announcement in collaboration with Neptune Global Technologies between the Neptune Digital Assets Corp. They jointly declared plans for an Alberta, Canada-based, renewable-energy mining facility.

In particular, a statement from the company suggested that they would use solar, wind, and low quantities of natural gas at the site.

Recent Mining Issues in Iran

According to a Financial Tribune article, the central bank of Iran announced last month that it approved the use of mined cryptocurrency to pay for imports by officially sanctioned miners.

Unfortunately, Iran will probably view cryptocurrency as a way to function without traditional financial controls, hit hard by foreign sanctions. In October 2020, the Iranian Central Bank changed its rules, allowing the official government-regulated mining of Bitcoin and other cryptocurrencies using subsidized energy to be provided to the government to finance imports. The central bank has expanded cryptocurrencies’ legal application to more groups nationwide.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.