Illegal crypto mining not the cause of power shortages in Iran, ministry says

Iran’s Ministry of Industry, Mine and Trade reportedly dismissed claims by main power firm Tavanir that blamed unlawful cryptocurrency miners for the ongoing power shortages in the nation.

According to a report by the Financial 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 power. “This quantity would equal power utilized by 3 million items of {hardware},” he mentioned.

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

“Unauthorized miners are the principal culprits behind the power outages in latest months. We would 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 in addition to confiscating 213,000 unauthorized mining {hardware} that was succesful of consuming 850 megawatts.

To date, Iran’s Ministry of Industry, Mine and Trade has approved 56 mining farms that collectively eat 400 megawatts, in keeping with Tanavir’s estimate. In 2020, the ministry approved and registered 126,000 items of mining gear, which consumed 195 megawatts when working at full capability.

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

Last yr, whistleblowers helped Tavanir shut down 1,100 crypto mining farms that allegedly did not have correct licenses.

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