Iran offers bounties for exposure of illegal crypto-mining operations

Iran offers bounties for exposure of illegal crypto-mining operations
(Source: Unsplash)

Cryptocurrency mining has been deemed by many to be energy-consuming. The ASIC miners used for the process utilize a significant amount of electricity for mining. In fact, the University of New Mexico published a paper elaborating on the hazards associated with cryptocurrency mining. Iran is one of the few countries to take note of the effects, both real and exaggerated, of cryptocurrency-mining on energy sources.

Despite its associated risks, however, many countries have legalized cryptocurrency mining. China and Iran are the most recent countries to do so. However, Iran has also obligated miners to provide the government with certain information pertaining to their businesses. In a recent update about the same, the Energy Ministry of Iran has announced that individuals who expose illegal mining operations in the country would be presented with a reward.

According to a local news report, 20 percent of the recovered damages incurred on the country’s power grid would be rewarded to individuals who report on people utilizing the country’s subsidized electricity for illegal cryptocurrency mining.

The country recently obligated cryptocurrency miners to possess a license, while also asking them to renew it every year. According to Mostafa Rajabi, a spokesman of the Energy Ministry of Iran, mining cryptocurrencies off the national electricity grid during peak hours of consumption would be banned. Such a ban will extend to over 300 hours a year, Rajabi added.

Presently, 9,650 rials, which is worth $0.08, is the average price for the export of electricity for every kilowatt-hour [KWh]. Further, this would be the baseline to estimate the price of the electricity consumed by miners. However, Rajabi went on to say that the price would be cut down to half, which is $0.04 per KWh, during the eight cold months of the year. On the other hand, the price would hit $0.16 per KWh in the warm months as energy consumption increases.

Additionally, the spokesman pointed out that those who establish their own power plants for cryptocurrency mining would be given incentives by the Iran government. “The national network would back up plants that feed on renewable sources, if a failure occurs during the generation of electricity,” Rajabi added.