Illegal Crypto Mining Not The Reason For Iran’s Power Deficiency!

The Ministry of Industry, Mines, and Trade of Iran has denied all the claims by major energy company Tavanir which accused the illegal cryptocurrency miners of the country of the ongoing electricity shortages. According to a Financial Tribune’s report, the ministry’s director of investment and planning, Alireza Hadi stated that the figures released by Tavanir “seem to be highly exaggerated”.

Alireza Hadi put questions to Tavanir’s claims that illegal mining operations consume 2,000 megawatts of energy. He said, “This amount would equal power used by 3 million pieces of hardware”. Although cryptocurrency mining has been legalized by the Iranian government, Tavanir blames all the unregistered and illegal crypto miners for a country-wide power shortage. In August 2021, spokesman for Tavanir, Rajabi Mashhadi said:

“Unauthorized miners are the main culprits behind the power outages in recent months. We would have had 80% less blackouts if miners had halted their activities.”

Tavanir also announced the closure of more than 5,000 mining farms. It also confiscated 213,000 illegal mining equipment that is capable of consuming 850 megawatts of power supply.

Tavanir Managing Power Consumption

According to Tanavir’s estimates, the Ministry of Industry, Mine, and Trade of Iran has so far allowed 56 mining farms to consume 400 megawatts in total. In the year 2020, the ministry authorized and registered the installations of 126,000 pieces of mining equipment. They consumed around 195 megawatts of power when running at full capacity.

Last year itself, many whistleblowers helped Tavanir shut down almost 1,100 crypto mining farms. They allegedly lacked the appropriate licenses needed to continue the operations. Iranian citizens who helped the authorities track down illegal miners received a reward of 100 million riyals (equivalent to $480). While Iran has approved registered companies to conduct mining operations; authorities have warned crypto miners to register their businesses and equipment before the end of the year 2020.

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