Iran has closed down roughly 7,000 illicit cryptocurrency mining enterprises

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Over the last two years, Iranian authorities have closed down 6,914 cryptocurrency locations functioning without a legitimate license. Since 2020, when the national power grid management blamed cryptocurrency mining for disrupting Iran’s electricity supply, local authorities have begun clamping down on unlawful cryptocurrency mining enterprises.

These cryptocurrency farms used over 645 megawatts of electricity while operating without a license. This quantity is comparable to the yearly usage of three areas in the country: North Khorasan, South Khorasan, and Chaharmal-Bakhtiari, according to the authorities.

In 2019, the Middle Eastern country was one of the first to authorize crypto mining as an economic activity. Since then, the nation has enacted legislation requiring crypto miners to get a license, identify themselves, pay a higher energy rate, and sell their mined Bitcoin to the government.

Consequently, many cryptocurrency miners in Iran have decided to mine unlawfully to reap the benefits of the country’s subsidized power costs.

Officials have seized over 220,000 mining machines and shut down roughly 6,000 farms in September. Another 900 people have been added to the list six months later.

With the number of illicit cryptocurrency mining businesses climbing, Iran’s top power regulator is considering adding penalties for unlicensed crypto mining enterprises.

Currently, miners must pay a fee and repay the energy network for the damages they create. The new legislation would increase the monetary penalties and the possibility of prison time.

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The International Monetary Fund (IMF) feels a far wider story at play as Iran seeks to address its crypto mining dilemma at home. As per the top banking regulator, countries like Iran may someday utilize crypto mining to escape sanctions.

The sanctions have resulted in huge inflation and a 300 percent increase in food costs. According to the Associated Press, inflation in Iran has reached 40%, the highest level since 1994. As famine spreads throughout the area, smuggling of Iran’s heavily subsidized bread into neighboring Iraq and Afghanistan has increased.

The International Monetary Fund (IMF) feels a far wider story at play as Iran seeks to address its crypto mining dilemma at home. According to the top banking regulator, countries like Iran may someday utilize crypto mining to escape sanctions.

The penalties have resulted in huge inflation and a 300 percent increase in food costs. According to the Associated Press, inflation in Iran has reached 40%, the highest level since 1994. Moreover, as hunger spreads throughout the area, the smuggling of Iran’s heavily subsidized bread into neighboring Iraq and Afghanistan has increased.

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