Iranian Courts Rule For Return of Seized Crypto Mining Hardware
Iran is set to return crypto mining hardware that were sophisticated during raids to combat illegal mining after the courts ordered it.
Over 150,000 Mining Equipments In Custody
In 2021, the Iranian government prohibited mining and confiscated related equipment to address power shortages.
In the previous year, Tavanir, the power utility company, had also targeted illegal crypto mining farms as power demand increased during the summer, according to reports. Tavanir shut down 7,200 illegal crypto mining centers and seized over 250,000 mining computers.
According to the Financial Tribune, the Iranian government’s OCSSOP will return some of the mining hardware it seized during raids on underground cryptocurrency operations, as ordered by the Iranian courts.
The Chairman of the Ministry of Economic Affairs and Finance in the country, Abdolmajid Eshtehadi, stated that the OCSSOP currently holds around 150,000 units of crypto mining equipment, a significant portion of which will be returned following judicial rulings. Eshtehadi added that some machines have already been returned.
The official also mentioned that the Power Generation, Transmission, and Distribution Company (Tavanir) in Iran should offer recommendations on how to use the mining equipment safely with the national grid.
Although cryptocurrency mining was legalized in Iran in July 2019, the government has repeatedly halted authorized coin minting activities due to power shortages during peak summer and winter months. In addition, it has taken a stricter stance on illegal mining by Iranians.
Mining companies can get licenses and import permissions from the Ministry of Industries, Mining, and Trade. In addition, miners must pay export prices for power and have their equipment certified by the Iran Standard Organization.
Iran’s Battle With Illegal Mining
In Iran, it is illegal to use resources like natural gas or consumer-grade electricity for crypto mining. However, underground mining operations using discounted electricity are on the rise as they can avoid obtaining licenses and paying higher bills.
Iran is a significant player in the bitcoin mining industry, with research from the University of Cambridge indicating that the country contributed nearly 4% of global bitcoin hashpower in 2020.
However, the Iranian government’s relationship with miners is complex. On the one hand, the government sees cryptocurrency mining as a source of income for the state and has implemented measures such as requiring miners to register with the Ministry of Industry, Mines and Trade and pay a higher tariff on electricity than other users.
On the other hand, the government has also cracked down on illegal mining operations and confiscated mining hardware
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