Crypto mining is a process that requires a lot of electricity. That’s why the Iranian government confiscated more than 9,000 cryptomining devices to avoid a power crisis.
According to the news of Iranian media outlet Iran International, Kambiz Nazerian, head of Tehran Electricity Distribution Company, said in a recent statement that the police found all energy-consuming devices placed in the regions of Iran’s capital, Tehran.
The country has been continuously detecting illegal mining activities in different cities of Iran for the past few years. Usually, these mining operations are carried out in public places, such as mosques and schools, where the majority of these mining operations are provided by the state, with subsidized or free electricity.
Crypto Mining Increases Electricity Demand
The Cambridge Bitcoin Electricity Consumption Index report states that Iran contributed 7.5 percent of the Bitcoin hash rate in March last year. Despite being an oil-rich state, the country faces power outages and water shortages.
In May, Iranian authorities took steps to contain the rising electricity demand and banned all mining activities in the region for four months. This ban will be lifted in September, but the authorities have already cut off the electricity to 118 licensed mining platforms to meet the electricity demand in Iran during the hottest months of summer.
In addition, the country identified and seized 45,000 application-specific integrated circuit machines at the beginning of last year. In addition, the state-run energy provider Tazeir continued its operations using subsidized electricity.
Iranian authorities also imposed restrictions on mining farms in the summer and winter of the previous year. In addition, while illegal miners were restricted, licensed platforms were free to disobey the rules.
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