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Iran Declares War on Bitcoin Miners, Shuts down 1,620 Unlicensed Operators

Bitcoin

The Iranian government is clamping down on unauthorized crypto miners in the country. The action is in line with a directive that made it compulsory for operators to obtain licenses from the appropriate authorities.

In July 2019, Iran became one of the first countries to recognize and license cryptocurrency mining as a legitimate industry. All cryptocurrency miners had to register with authorities by August 2020.  Sources claim that these illegal operators allegedly used nearly 250 megawatts of electricity since late 2019.

Tavanir, Iran’s power generation, distribution, and transmission company, revealed that illegal mining operations have damaged their distribution infrastructure. The company stated that the offenders would be made to pay heavy penalties.

The spokesman for Tavanir, Mostafa Rajabi Mashhadi, claimed that the company would take strict disciplinary measures with unauthorized miners. He also threatened that their mining locations would get disconnected from the national grid.

Growing Concern

Iran is the third-largest crude oil-producing country under the Organization of Petroleum Exporting Countries(OPEC). However, the country still struggles economically because of its tense relationship with the western world.

The crypto mining community in Iran opposed some of the requirements laid out by the authorities, mentioning that the Iranian government is not encouraging crypto mining in the country by imposing high electricity tariffs.

Only one firm, named iMiner has registered for a Bitcoin Mining License from the country’s Ministry of Industry, Mine and Trade. This is an indication that the criteria for registration may be too high for small scale miners.

Image Credits: Pixabay

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