Just-In: Iran To Crack Down On Illegal Crypto Mining

All over the globe, the majority of the countries are working on making rules and regulations regarding Cryptocurrencies. In a bid to eliminate illegal crypto mining, Iran is looking forward to regulating more strict laws. The Iranian Government is aiming to proceed with new regulations to increase fine over unlawful crypto mining.

While the country allows authorized crypto mining, it had cracked down on illegal mining last year to ease the burdens on its electricity grid. Iran’s new regulation will include jailing culprits and repealing business licenses in the case of recurring violations.

Iran to prohibit misuse of electricity

According to a report by Tehran Times, the new strict sanctions will increase the fines by at least 3 times to 5 times. An official has mentioned that using subsidized electricity available for households, industries and agriculture for mining digital assets will be banned.

The nation has noted the increase in the misuse of subsidized electric power. The official raised the issue that these illegal activities have been costing the supply of electricity in the national grid. While fluctuation is also damaging people’s electric home appliances.

In 2019, the Iranian government granted approval for cryptocurrency mining but only for industrial activities. This decision lead to a surge in mining across the country. Later at the beginning of 2020, the authorities issued more than 1,000 cryptocurrency mining units. In May 2021, the ministers even warned the defaulters over misusing electricity and said that they have to heavy fines.

As per the report, the law isn’t restricted to fines, the offenders will have to pay for the damage caused to the electricity network and grid.

Mining’s energy consumption a controversial topic

Nations like China have sent a strong signal over the world by placing a countrywide ban on crypto mining, due to concerns over the act’s high energy use. Kazakhstan had also cracked down on the space due to a severe energy shortage in the country.

Recently, the European Union voted on banning mining-intensive cryptocurrencies over their potential environmental impact. The proposal was rejected.