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Monday, August 24, 2020

IRAN SHUTS DOWN 1,100 ILLEGAL BITCOIN MINERS; WHISTLEBLOWERS AWARDED $ 2,400

 

  The Iranian Power, Distribution and Transmission Company (Tavanir) has reportedly shut down 1,100 illegal bitcoin mining in the country, local media reported.


Whistle-blowers alerted authorities to unofficial miners following the announcement of July's bounty including 100 million rials (approximately $ 2,400).


Deputy chief Tavanir Mostafa Rajabi Mashhadi told Fars News Agency that attacks on previously unlawful crypto mining have been restricted because power companies "cannot detect all illegal farms just by studying their consumption patterns."


Iranian bitcoin (BTC) miners welcomed authorization in July last year, but later complained about high electricity rates. Some have started operating underground using subsidized electricity.


According to Rajabi Mashhadi, some miners are setting up equipment in industrial and agricultural units that are already using a lot of power to avoid detection. Because of this, Tavanir's monitoring shows no significant changes in the consumption of this particular category, he added.


Iran, the world's third-largest oil producer, has also been battling smuggling of mining equipment into the country.


Since 2019, the Islamic Republic has issued 624 mining permits, the Financial Tribune reports, but some licensed farms are unemployed. Last month, Iranian Vice President Eshaq Jahangiri Kouhshahi said that all miners would immediately be required to register with the government.


Iran's biggest draw is its cheap electricity, attracting BTC miners from Ukraine and China. According to official data, mines in the country pay out at least 4,800 rials ($ 0.01) per kilowatt-hour (kWh) of electricity but tariffs quadrupled to 19,300 rials ($ 0.05) during the peak summer season, starting in June. until September.


As news.Bitcoin.com reported, the state electric utility announced in July that it would cut up to 47% of electricity tariffs for miners during peak consumption periods in a bid to encourage legalized mining.


However, to be eligible for incentives, bitcoin miners need to participate in Tavanir's "power efficiency project" including continuous replacement of one million old AC.


The Iranian government's appeal to bitcoin is political and economic, mainly motivated by a desire for financial freedom from the excessive reach of the US government.

 What do you think about Iran closing down bitcoin mining fields? Let us know in the comments section below.

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