Crypto News: Iran To Toughen Penalties For Illegal Use Of Subsidized Energy In Crypto Mining

Crypto News – The Iranian government will toughen punishments for crypto miners that use subsidized energy.

iexclusivenews reports that the action is another step in the country’s tightening of mining regulations. Which has been hampered by recent energy shortages.

This online news outlet understands that the Tehran Times reported on April 16 that the government planned to substantially increase fines for mining companies.

Who utilize subsidized electricity. Citing the country’s Power Generation, Distribution, and Transmission business. Mohammad Khodadadi Bohlouli, the company’s spokesman, stated:

“Any use of subsidized electricity, intended for households, industrial, agricultural and commercial subscribers, for mining cryptocurrency is prohibited.”

iexclusivenews Nigeria reports that fines for using subsidized energy in mining will increase by a minimum of three times and a maximum of five times, according to Bohlouli.

Repeated violations may result in the termination of a business’s license and, in extreme cases, the offender’s incarceration.

Since 2019, cryptocurrency mining businesses in Iran have been legalized and are subject to a licensing process.

The Ministry of Industry, Mining, and Trade had issued approximately 1,000 mining permits as of January 2020.

In May 2021, Iran’s President Hasan Rouhani issued a temporary embargo on crypto mining due to serious obstacles to the country’s energy grid. Such as dryness and reduced rainfall.

When the prohibition was lifted in September 2021, only to be reintroduced in December, the cycle repeated again.

Meanwhile, iexclusivenews reports that unauthorized cryptocurrency mining “creates problems in supplying electricity. Owing to damage to the local power infrastructure and transformers.”

According to Iranian energy ministry spokesman Mostafa Rajabi Mashhadi. Who announced sanctions for the usage of subsidized energy in May 2021.