Iranian authorities have confirmed that around 240,000 cryptocurrency mining rigs have been seized over the past three years, state-owned electricity company Tavanir said on Sunday, expressing dissatisfaction with the current state of the country's energy sector.
Iran has reportedly been facing power shortages and grid instability in recent months, raising serious concerns among senior officials. Tavanir CEO Mostafa Rajabi Mashhadi noted that the confiscated cryptocurrency mining rigs consumed around 800 megawatts of electricity.
In his comments, Mashhadi compared the electricity consumption of mining installations with the Bushehr nuclear power plant's capacity of 1,000 megawatts. He stressed that activities such as mining put pressure on the national power grid as Iran continues to face a growing energy crisis.
Despite being one of the world’s leading suppliers of natural gas and oil, Iran has found itself in the midst of a severe energy crisis. In December, the country imposed restrictions on electricity consumption, government offices were operating on reduced hours or were closed, and schools and colleges moved their classes online. Many places, including shopping malls and highways, were often plunged into darkness due to worsening energy problems.
Iran confirms unauthorized mining activity
In his statement, Mashhadi noted that the country still faces the problem of illegal use of the electricity grid despite the severity of the energy situation. “Unfortunately, illegal use of electricity still occurs in the country,” Mashhadi said. He also called on the Economic Security Police to actively cooperate in identifying the remaining illegal miners.
Under Iranian law, anyone caught with illegal and unregistered cryptocurrency mining equipment will be held accountable, resulting in the confiscation of the device and a fine of up to three times the value of the illegal equipment. According to Tavanir, the country’s deputy for transmission and foreign trade, there are still illegal miners operating in the country, with their number estimated at around 700,000.
The MP said these machines consume at least 2,000 megawatts of electricity. He also noted that the situation continues to worsen due to factors such as rising temperatures and industrial activity, which are putting additional pressure on the national grid. A previous statement by Ali Nikbakht, chairman of Iran's Power Plants Trade Association, suggested that the country would face a power deficit of 25,000 megawatts by next year, accounting for a third of its total consumption.
While Iran continues to confiscate mining rigs, the country has also had a rocky relationship with cryptocurrencies. The Central Bank of Iran (CBI) has now banned the conversion of fiat currency into cryptocurrency, barring the country’s main electronic payment system, Shaparak, from providing such services. The move was made to combat the currency’s sharp decline and the damage it has caused to the economy.
The country also announced a ban on deposits and withdrawals from exchanges, which came after the currency lost 37% of its value against the US dollar. According to the report, about a million Iranians have lost access to crypto services in the past few days.
However, despite these restrictions, the CBI is taking steps to regulate the digital asset space, publishing a report titled “Cryptocurrency Policy and Regulatory Framework” in December 2024. While this initiative is a step in the right direction, it comes with invasive requirements that force platforms to share traders’ personal information with the state. While the Fintech Association of Iran has spoken out against the move, it remains to be seen what measures Iran will take regarding digital assets in the future.
Source: cryptonews.net
