Bitcoin
$41,648.01+5.04%
Ethereum
$2,228.78+3.33%
Binance Coin
$225.56+0.85%
XRP
$0.61657986-1.45%
Solana
$60.38-4.51%
Cardano
$0.40071237+2.33%
Dogecoin
$0.08716240+3.69%
Tron
$0.10511463-5.41%
Chainlink
$15.62-1.54%
Avalanche
$21.27-2.31%
Polygon
$0.79561375-0.84%
Polkadot
$5.50+1.79%
PlayIconNav
Crypto Prices CoinDesk Market Index CoinDesk Market Index
Policy

Iran Cracks Down on Crypto Miners Using Household Electricity: Report

The measure comes as Iran suffers a shortage of hydropower in unusually dry conditions.

By Jamie Crawley
AccessTimeIconMay 17, 2021 at 11:27 a.m. UTC
Updated Sep 14, 2021 at 12:56 p.m. UTC
connection-4821773_1920

10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Cryptocurrency miners in Iran who use household electricity for their operations will face heavy fines, according to the country’s energy ministry.

  • Furthermore, miners will have to pay for damages caused to the electricity network, a spokesman for the ministry said, as reported Sunday by English-language newspaper the Tehran Times.
  • The measure comes in response to concerns over the burden cryptocurrency mining is placing on the country’s electricity supply, which has been under strain this year thanks to reduced rainfall limiting the output of hydropower plants. 
  • Iran has attempted to boost its sanction-hit economy with crypto mining. The country contributed some 4% of the total global bitcoin hash power in 2020 according to research by the University of Cambridge’s Centre for Alternative Finance. 
  • However, the country’s government has attempted to keep miners on a short leash to manage the economic benefits within the scope of its electricity supply.
  • Mining facilities must register with the government, with owners being required to disclose their identities, the size of their farms and what kind of equipment they are using, per new directives issued last year.

Also read: Iran’s Central Bank Reportedly Bans Trading of Crypto Mined Abroad

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.