Unlawful crypto mining not the reason for energy shortages in Iran, ministry says


Iran’s Ministry of Business, Mine and Commerce reportedly dismissed claims by main energy firm Tavanir that blamed unlawful cryptocurrency miners for the continuing energy shortages within the nation.

Based on a report by the Monetary Tribune, Alireza Hadi, the ministry’s director of funding and planning, mentioned that the figures introduced by Tavanir “appear to be extremely exaggerated.” Hadi questioned Tavanir’s claims that unlawful mining actions eat 2,000 megawatts of energy. “This quantity would equal energy utilized by 3 million items of {hardware},” he mentioned.

Whereas mining cryptocurrency has been legalized by the Iranian authorities, Tavanir blames unregistered miners for nationwide energy shortages. In August 2021, Tavanir spokesperson Rajabi Mashhadi mentioned:

“Unauthorized miners are the principle culprits behind the facility outages in latest months. We might have had 80% much less blackouts if miners had halted their actions.”

Tavanir additionally claims to have shut down operations for over 5,000 mining farms along with confiscating 213,000 unauthorized mining {hardware} that was able to consuming 850 megawatts.

Thus far, Iran’s Ministry of Business, Mine and Commerce has licensed 56 mining farms that collectively eat 400 megawatts, in accordance with Tanavir’s estimate. In 2020, the ministry licensed and registered 126,000 items of mining gear, which consumed 195 megawatts when operating at full capability.

Associated: The Iranian authorities took down over a thousand crypto mining farms

Final yr, whistleblowers helped Tavanir shut down 1,100 crypto mining farms that allegedly didn’t have correct licenses.

Iranian residents who assist the authorities monitor down unlawful miners had been awarded 100 million rials ($480) as a bounty. Though Iran has accepted registered companies to conduct mining operations, authorities had warned crypto miners to register their enterprise and gear earlier than the top of 2020.