Story Highlights
- Iran seizes 240,000 crypto mining rigs in 3 years.
- Illegal crypto miners consume 2,000 MW in Iran.
- 700,000 unauthorized mining rigs still active across the country.
Iranian authorities have seized more than 240,000 crypto mining rigs over the past three years, according to the state electricity company, Tavanir. This crackdown occurs because the country experiences critical electricity deficiencies and intensified energy network stress.
Mostafa Rajabi Mashhadi, who serves as Tavanir’s chief executive, disclosed that the confiscated mining equipment required 800 megawatts of electricity. He explained the situation by comparing it to Bushehr nuclear power plant with its 1,000 megawatt capacity. The action of illegal mining operations creates significant pressure on Iran’s national power grid.
The situation with unauthorized cryptocurrency mining persists even after authorities took measures to curb it. Mashhadi expressed his view that the Economic Security Police should collaborate more closely to locate criminal mining operations that officials want to shut down. The confiscation of unregistered mining equipment along with fines equivalent to three times its value is enforced according to Iranian legal provisions.
Iran Faces 25,000 MW Deficit Amid Rising Crypto Mining
The national authorities have confiscated thousands of mining rigs but believe more than 700,000 unauthorized mining devices remain operational throughout the country. The unauthorized miners consume almost 2,000 megawatts of electricity, which creates greater stress on Iran’s power infrastructure.
Rising temperatures, together with growing industrial power requirements, have led to an increased severity of the situation. The energy crisis has led Iran to temporarily close governmental facilities, educational institutions, and financial institutions throughout the country.
The power supply shortages that experts predict Iran will face will probably persist into the future. According to Ali Nikbakht, who leads Iran’s Power Plants Trade Association, the country will experience a deficit of 25,000 megawatts in electricity production for the upcoming year, which will constitute approximately thirty percent of national power usage.
Delayed payment to power suppliers has become a key concern for Iranian authorities, who watch over their cryptocurrency market activities. The Central Bank of Iran plans to introduce new regulations because Iranian cryptocurrency holders reportedly hold assets valued between $30 billion and $50 billion. The pattern shows cryptocurrency maintains strong financial influence throughout Iran even after government suppression.
