The Iranian government has historically had a complicated relationship with cryptocurrency. A few years ago, the government threatened that crypto miners would be cut off entirely from the national grid after it was found out that several miners were tapping into the grid to mine cryptocurrency at subsidized energy rates.
A separate tariff was eventually created for cryptocurrency mining but that has not fully solved the issue. Earlier this year, it was announced that cryptocurrency mining would be suspended until September to allow Iranians to enjoy access to electricity over the summer without having to share it with crypto miners whose activities are often very energy-intensive.
Seizing of Equipment
In light of this new development, Iranian authorities have taken to seizing cryptocurrency mining equipment as part of an ongoing crackdown. Just recently, up to 7,000 mining rigs were confiscated from a mining farm in the capital of Tehran. According to reports, the minors were working out of an abandoned factory, and should the facility be working at full capacity, up to 4% of the daily average energy consumption in Iran would go towards mining alone.
This is not the only seizure that has taken place recently as 3,000 miners were confiscated across the capital in the last few days across 50 locations. This latest seizure of 7,000 miners, however, is perhaps the biggest single seizure that has taken place. While this incident involves a large mining operation, it has been suggested that the police will turn its attention to individual miners who are mining out of their homes on smaller-scale operations.
Given that we still have several more months of summer, we can expect to see even more seizures take place over time. This represents a very complicated relationship between the government and miners in that miners want to mine cryptocurrency now that the market is in a dip and make a profit in the future while the government wants the summer to be free of mining activities.
This is not the only incident of illegal activity taking place with regards to crypto mining as around the world, people have been arrested for stealing energy to mine cryptocurrency and this has taken place everywhere from China to the United States.
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