Iran Toughens Punishment For Illegal Cryptocurrency Mining

Iran Toughens Punishment For Illegal Cryptocurrency Mining

Iran Toughens Punishment For Illegal Cryptocurrency Mining

Iranian authorities have increased penalties for illegal mining of cryptocurrencies using subsidized electricity and introduced prison sentences for repeat offenders. Writes about it Tehran Times with reference to a representative of the Department of Energy.

“Any use of subsidized electricity intended for households, industrial, agricultural and commercial subscribers for cryptocurrency mining is prohibited,” a ministry spokesman said.

According to officials, the activity of the miners creates problems with the supply of electricity, contributes to the deterioration of the power grid and can lead to damage to the devices of ordinary users.

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The new rules also suggest that violators may have their licenses for activities related to the extraction of digital currencies revoked. In addition, such entities will be obliged to compensate for the damage they caused to the power grid.

Iran periodically imposes restrictions on cryptocurrency mining. In May 2021, President Hassan Rouhani announced temporary ban on the production of cryptocurrencies due to a shortage of electricity. Reopen licensed businesses allowed in autumn.

In December of the same year, the state energy holding Tavanir demanded from authorized miners to suspend work.

Recall that Elliptic analysts said that Cryptocurrency allows Iran to bypass sanctions and buy imported goods.

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