Iranian authorities have confirmed the seizing of approximately 240,000 cryptocurrency mining rigs over the past three years. The confirmation was made by state utility Tavanir on Sunday as the company lamented the state’s electricity condition in the country.
Reports say Iran has suffered from power shortages and network instability over the past few months, a source of concern for higher concern. According to Mostafa Rajabi Mashhadi, CEO of Tavanir, the confiscated cryptocurrency mine rigs consumed an estimated power of around 800 megawatts.
In his statement, Mashhadi compared the electricity consumed by the mining rig to the capacity of the Bushell nuclear power plant, which is located at 1,000 megawatts. He said activities like mining in Iran are straining the country’s nationwide grid as Iran continues to tackle the worsening energy crisis.
Iran has found himself in the midst of an emergency energy crisis, despite being one of the world’s largest suppliers of natural gas and crude oil. In December, the state was rationing power, with government agencies operating in a short time or closed completely, while schools and universities moved most of their activities online. Several locations, including malls and highways, were often shrouded in darkness amid aggravating energy issues.
Iran has confirmed the existence of illegal mining activities
Mashhadi said the country is still tackling the issue of residents who use their electricity networks illegally, despite being in the middle of a disastrous energy issue. “Unfortunately, illegal use of power networks is still occurring domestically,” Mashhadi said. He also urged the Economic Security Police to ensure rapid cooperation in catching the remaining illegal miners.
Under Iranian law, anyone caught up in possession of an illegal, unregistered cryptocurrency mining device faces the law, converting it into a device confiscation and fines of up to three times the value of the illegal device. According to Tavanir’s transmission and foreign trade agency, illegal miners still exist in the country, with the figure being around 700,000.
The aide said these machines consume more than 2,000 megawatts of electricity. He also emphasized that things have gotten worse as factors like temperature rise and industrial activity continue to put pressure on the national grid. In an earlier statement from Ali Nikbakut, chairman of Iran’s Power Plant Industry Association, the country is estimated to have a power deficit of 25,000 megawatts by next year, accounting for a third of national consumption.
Iran continues to confiscate mining rigs, but the country also enjoys complex relationships with cryptocurrencies. Currently, the Central Bank of Iran (CBI) has banned the conversion of Fiat currency into crypto, and Shapalak, the country’s leading electronic payments network, from carrying out such services. The country took this route to deal with the free fall of currency and the damage to the economy.
The state has also announced a ban on deposits and withdrawals from exchanges. This is a move that took place after the country’s currency lost 37% of its value against the US dollar. Records show that in the past few days, around one million Iranians have not been able to access to run cryptographic services.
However, these prohibitions are in effect, but CBI has taken steps to regulate the digital asset sector, and published a report in December 2024 titled “Cryptocurrency Policy and Regulatory Framework.” The initiative was a step in the right direction, but it required a platform to share personal details about traders with the government. The Iran Fintech Association is opposed to the move, but it remains to be seen what Iran will do with its assets in the future.
