In the Islamic Republic of Iran, they are going to pass a law according to which the illegal use of electricity for the extraction of cryptocurrencies is punishable by a large fine and prison.
Mohammad Khodadadi Bohlouli, a spokesman for the state-owned electric power company Tavanir, said the tougher penalties include a minimum of three to a maximum of five times fines, imprisonment, and, in the event of a repeat violation, revocation of business permits.
Khodadadi insists that the misuse of subsidized electricity for mining cryptocurrencies degrades the quality of the electricity supply of the national energy network and damages household appliances of citizens – TVs, refrigerators and air conditioners.
“Mining cryptocurrencies using electricity intended for domestic, industrial, agricultural and commercial subscribers is illegal,” the energy representative emphasizes.
After the approval of mining as an industrial activity by the Iranian government in 2019, the country began a cryptocurrency mining boom thanks to cheap electricity. In recent years, Iranian energy companies have begun to consider raising the rates for miners.
In January 2020, the Iranian Ministry of Industry and Trade issued over 1,000 licenses for mining companies. Against the background of the legalization of the industry, a number of unregistered companies began to use household electricity for cryptocurrency mining. This, officials say, has created serious problems for the country’s energy sector, which has been plagued by periodic drought problems.
In May 2021, Mostafa Rajabi Mashhad, Iranian Ministry of Energy spokesman for the electricity sector, said that unregistered mining farms would be required to pay a heavy fine. In addition to paying fines, miners will have to compensate for the damage caused to the energy industry. In March, Iran’s Ministry of Industry and Trade said it plans to combat electricity shortages by tightening rules for mining companies.
