Copy link
Increase text size
Decrease text size
Link copied

Iran cracks down crypto-miners as the government regulates mining

Image Credit: Block Publisher

Mon, 30 Sep 2019, 07:07 am UTC

The Iranian government has reportedly been cracking down local cryptocurrency miners in the past three months, following a new pending regulation that will regulate crypto mining via licensing.

With no official legislation in place, crypto-miners in the country are reportedly fined and outright arrested and jailed for the practice. In fact, an estimated more than 80,000 mining machines have reportedly been confiscated over the last 4 months.

According to CoinDesk, one bitcoiner allegedly lost thousands of machines and caused the loss of income of 30 households that depended on mining crypto. He also revealed he knows over 15 bitcoiners who were sent behind bars.

Some bitcoiners have also allegedly surrendered the deeds of their houses to pay for the hefty fines that usually ranged between $2,000 and $5,000. The charges were several more times higher than a machine’s retail value and worth more than their annual salaries. In addition, these penalties are further added to the steep electrical fines, which are usually four times the annual cost of power for the machines.

Smuggled Machines

The legality of crypto-mining in Iran is compounded by smuggled equipment and subsidized electricity fees. Technically speaking, most equipment and appliance in Iran are obtained through the black market.

As such, an anonymous developer argued that “if [the government] really wanted to fine all the people in the country using or selling smuggled merchandise, they’d have to fine everyone in this country.”

The Start of This All

The crackdown of the Iranian government started because of the staggering cheap energy rates in the country. With an electricity rate of just $0.0006 in some areas, Iran became an attractive market for the industry that has a high power demand.

It can be recalled last July that local authorities seized around 1,000 bitcoin mining machines from two abandoned factories, after a spike in electricity consumption. The increased crypto activities have destabilized the power grid and affected electrical accesses for households and businesses, noting that mining one coin equaled to the power used by 24 residential units for an entire year.

That same month, the government gave the go signal to allow crypto mining in the country, provided that miners will obtain the appropriate license for it. To that end, prospective parties are encouraged to approach the Ministry of Industry, Mine, and Trade and apply for the right authorization.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $8,793.39 (-6.11%)
  • Ethereum (ETH) $225.15 (-9.92%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $317.68 (-10.25%)
  • Bitcoin SV (BSV) $222.78 (-14.22%)
  • Bitcoin (BTC) $8,793.39 (-6.11%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft