Iran’s Power Generation, Distribution and Transmission Company (Tavanir) has shut 1,100 unlicensed crypto mining farms for illegally using subsidized electricity.
Unlicensed miners install equipment at industrial and agricultural units that are using subsidized electricity which is illegal, Tavanir spokesman Mostafa Rajabi Mashhadi was quoted as saying by Fars News Agency.
The Iranian government has recognized crypto currency mining as a legal industry since July 2019 and miners have to ask for legal licenses.
This was first welcomed by miners as a positive move, but many complained about the high power tariffs. Later they concealed their illegal lucrative operations and went underground to deceive utility companies.
Miners are charged 4,800 rials (2 cents) for one kilowatt-hour that is half the electricity export rate in autumn, winter and spring. The price for summer surges to 19,300 rials/kw (8 cents/kw), twice the price for exported electricity in summer (June to Sept).
So far 624 mining farms have permits.