Iran’s Energy Ministry has warned citizens mining cryptocurrencies at home that they could face heavy fines if they continue to do so
Iran is one of the leading cryptocurrency mining destinations in the world, and the Middle Eastern country has favourable cryptocurrency mining and trading policies in place. However, the Energy Ministry has warned its citizens against using home electricity to mine cryptocurrencies.
A spokesperson for the Iranian Energy Ministry, Mostafa Rajabi, told the Tehran Times that the government would heavily fine anyone caught using home electricity for cryptocurrency mining purposes. He added that those miners would also have to compensate for the damages they cause to the electricity network.
According to Rajabi, cryptocurrency mining is one of the two biggest threats to the country’s electricity supply this year. The country is already suffering from a decline in power coming from hydropower plants due to an absence of rain.
The Iranian government is now cracking down on unauthorised mining operations that take place using household power instead of industrial sources. The cryptocurrency mining sector is heavily reliant on the country’s power grid, which has placed heavy demands on the national power supply. The spokesperson admitted that cryptocurrency mining could even cause blackouts across the country.
Iran is one of the countries that has legalised cryptocurrency mining. The Iranian minister predicted in 2019 that the cryptocurrency mining sector could generate roughly $8.5 billion per year. The Iranian central bank made it compulsory for miners to sell to them, as they use the cryptocurrencies to circumvent the trading sanctions put in place by the United States. Recently, the Iranian central bank also mandated crypto miners to sell cryptocurrencies to forex shops and banks. The cryptocurrencies will still be used to import goods into the country.