• Mon, 14 Oct 2019, 03:59 PM
  • All times are UTC
  • Edition:
Copy link
Increase text size
Decrease text size
Link copied

Iran seizes 1,000 Bitcoin mining machines as electricity consumption increases

Mon, 01 Jul 2019, 04:08 am UTC

Iranian authorities have seized around 1,000 bitcoin mining machines from two abandoned factories, following a spike in electricity consumption, according to RadioFreeEurope.

As per the report, the month of June has seen an increase of power demand by 7%, and Iranian Energy Ministry spokesperson Mostafa Rajabi said cryptocurrency mining was thought to be the main cause.

According to the minister, the increased crypto mining activities have destabilized the power grid and affected electrical access for households and businesses. He noted that mining one coin equaled to the power used by 24 residential units for an entire year.

According to BBC, large-scale mining cryptocurrencies, which use highly specialized computers, are a potential lucrative operation that compensates owners with newly generated coins for providing computing power to validate network transactions.

Media reports have suggested that Iran’s heavily subsidized electricity (as low as $0.006 per kilowatt-hour) makes it an ideal place to run a crypto mining farm. In fact, it has turned into a “hotspot” even for Chinese miners. CoinDesk also reported that Tehran-based Areatak is allegedly luring foreign capital to establish crypto mining sites in the country, although the practice is illegal.

The latest move marks the Islamic state’s first step as Rajabi warned that the government will continue to crack down mining operations in the country, as some crypto farms are reportedly based in schools and mosques where electricity is free. Moreover, the government is also looking at a way to charge cryptocurrency miners at a special price.

Meanwhile, the State Duma, the parliament of Russia, is considering imposing administrative penalties for those who mine, produce, circulate, and exchange cryptocurrencies using open blockchain.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $8,308.59 (-1.55%)
  • Ethereum (ETH) $182.96 (-0.87%)
  • XRP (XRP) $0.289700 (+3.53%)
  • Bitcoin Cash (BCH) $225.66 (-0.73%)
  • Litecoin (LTC) $56.72 (-1.31%)
  • Bitcoin (BTC) $8,308.59 (-1.55%)
Oct 14, 2019 (Monday)
BMW, Ford, GM and others working on proof of concept for blockchain-based vehicle identity system
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Crypto Technicals: LTC/USD finds stiff resistance at 21-EMA (58.62), breakout confirms further upside
G7 says global stablecoins like Libra pose threat to financial stability: Report
Global stablecoins could become systemically important: Financial Stability Board Chair
Crypto Technicals: Ripple (XRP) spikes higher, hits 4-week high (0.29369), bias bullish
Crypto Technicals: ETH/USD consolidates above 200H SMA, intraday bias turning bullish
U.S. IRS wants to know your crypto ownership in updated income tax form
U.S. SEC, CFTC, FinCEN issue rare statement warning crypto users to abide banking laws
Crypto Valley Association joins International Digital Asset Exchange Association
Crypto Technicals: BTC/USD extends sideways above 200H SMA support (8277), weakness likely on break below
tZERO and Box Digital-owned firm files with SEC to launch regulated security token market
Blockchain trade finance network Marco Polo pilots first trade transactions between Russia and Germany
Crypto exchange Coinbase secures e-money license from Central Bank of Ireland
World Federation of Exchanges urges UK FCA not to ban sale of crypto derivatives to retail investors
Telegram may postpone Gram token launch after SEC stops U.S. crypto sale
Mastercard, Visa, eBay, Stripe, Mercado Pago abandon Facebook-led Libra Association
Oct 11, 2019 (Friday)
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.