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Crypto Mining Using Domestic Power to Face Heavy Fines

TEHRAN, an Iranian news reporter, declared that crypto miners using household energy would face heavy fines if revealed. That comes after Elon Musk showed his concern for cryptocurrency electricity consumption.

Besides paying the stated fines, the crypto miners will have to compensate for any electricity damages. In 2021 two factors face the Iran power supply sector: reduced power generation because of inadequate rainfall and crypto miners using domestic electricity. Mashhadi Rajabi said that illegal cryptocurrency mining affects the power supply due to the damages the processes have to the transformers and local electricity grid. He further declared that failure to control the unauthorized crypto mining would destroy electricity supply with blackouts possibility.

Remember, in 2019, the Iranian administration approved crypto mining, referring to it as an industrial undertaking. As a result, many companies took advantage of the cheaper electricity in the country to start mining digital coins. It is undoubtedly that the government viewed this as a revenue-making opportunity.

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In 2020, the Mining ministry issued more than 1,000 crypto mining licenses. As crypto-mining activities flourish in Iran, electricity authorities showed their concern about the pressure that the activities have on the power grid. In response, some electricity plant firms proposed to provide crypto miners with their excess power. Though with given conditions, the government accepted the proposal to reduce the national grid burden. However, power plants will not enjoy government subsidies on energy supplies.

Rajabi declared in past July that Power plants with a license could mine electricity. They will also have to follow crypto mining policies. After the announcement, Iran’s TPPH leader declared that his firm will support crypto mining.

For now, any crypto miner using domestic electricity will face heavy fines. Mohsen Tarztalab declared that Iran’s power industry aims at creating stable income sources. He said that the constant price fluctuations and the obligation to supply power with constant prices resulted in a gap between the industry’s expenditure and revenue, thus the necessity of new income sources to fill the gap.

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Selling electricity to cryptocurrency miners will earn the electricity industry more money.

Bentley Kapoor (India)

Bentley is a cryptocurrency enthusiast and trader, his articles are news and platform review based. His writings are brought to you through his 10 years of experience in the cryptocurrency markets.

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