Wednesday, October 27, 2021

Iranian authorities shut down over 1600 illegal cryptocurrency mining farms.

The Takeaway:

Iranian authorities shut down 1,620 illegal crypto mining farms that collectively used 250 megawatts of electricity over the past 18 months.

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The recent rally of Bitcoin towards its new all-time high of over $40,000 has had unwanted consequences in some parts of the world. According to the WuBlockchain report, Bitcoin’s mining operations in Iran could have caused blackouts in the country. As a result, Iranian authorities have ordered the cessation of licensed BTC mining companies’ activities, effective January 14 of this year. Earlier, authorities shut down 1,620 illegal cryptocurrency mining farms that collectively used 250 megawatts of electricity over the past year or so.

 

Most of the crypto mining companies are Chinese. 

The report indicates that most of the crypto mining companies are Chinese. The increase in Bitcoin price has created strong incentives that have attracted Chinese investors to mining activities. Power failures were reported in 11 of Iran’s 31 provinces. After the blackouts, the country’s inhabitants began to express discontent, and the media attributed the failure to Bitcoin mining. The government did not explain the reason for power failures but decided to crackdown on the Bitcoin mining pools. The rise in the price of BTC coincides with a reduction in the production cost of a Bitcoin that is located at a low point in Iran.

 

Crypto miners continue to indulge in power theft. 

When legalizing the crypto mining industry, the Iranian government hoped it would boost the economy and bring more taxes. Crypto miners initially welcomed the move. However, according to the Financial Tribune report, this changed after miners realized how high the miners’ electricity tariffs were. To evade these tariffs, they went underground with their operations. Power companies, together with authorities, have been hunting them down since then. Tavanir, whose power most of the crypto miners have been stealing, is authorized to shut down such illegal operations, the report notes.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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