thecoinrise.com
The Iranian government has unveiled additional sanctions on individuals or entities that are caught involved in the illegal mining of cryptocurrencies in the country. According to the Tehran Times, the government is particularly frowning at the use of subsidized energy meant for domestic consumption for crypto mining, as it noted that the move can continually cause problems to the National Grid.
Despite Iran’s positive stance toward crypto mining by recognizing Proof-of-Work (PoW) mining activities as an industrial activity back in 2019, the recent energy crises the Asian country is facing have forced it to introduce stiff laws to govern the emerging industry. Mohammad Khodadadi Bohlouli, a representative of the Distribution, and Transmission Company (Tanavir) said that the new regulations will involve an increase in the fine amount for potential offenders.
According to Khodadadi, perpetual offenders stand the risk of going to jail for at least 3 years and at most 5 years if caught.
“Any use of subsidized electricity, intended for households, industrial, agricultural and commercial subscribers, for mining cryptocurrency is prohibited,” Khodadadi said.
Iran not Banning Crypto Mining
The move by the Tanavir and the broader Iranian government to stiffen the activities of miners is not an attempt to ban the mining of BTC or other prominent cryptocurrencies using the PoW consensus model. Rather, it is to make room for the realities in the Iranian electricity industry which at this time is being marred by drought and reduced rainfall.
To showcase the forward-thinking approach of Iran, the government granted as many as 1000 licenses to crypto miners that identified themselves as a company back in January 2020. Since mining took center stage in the country, a number of companies have shifted their capital into the new space as it forms a viable avenue for shoring up their revenue in the near term.
The fallout of mining activities in China has also stirred the massive influx of Bitcoin miners into Iran as the country accounts for one of the areas in which energy is still quite cheap and affordable. With the new laws, perhaps the unlicensed miners in the country will take the initiative to suspend their activities for fear of being prosecuted.