Crypto News – Iran Rewards Citizens $20 for Reporting Unauthorized Cryptocurrency Mining

Crypto News – Iran Cracks Down on Illegal Crypto Mining with $20 Reporting Incentive

Crypto News – Iran is now offering a bounty of up to $20 for individuals who report illegal cryptocurrency mining operations, as the country grapples with severe power shortages exacerbated by a heatwave. With temperatures in some regions reaching 113 degrees Fahrenheit (45 degrees Celsius), the nation’s power grid is under intense strain. The CEO of Iran’s state-run electricity company, Tavanir, attributes some of this strain to unauthorized crypto mining activities, according to Iran International’s report on August 13.

Reward for Reporting Unauthorized Mining

Mostafa Rajabi Mashhadi, CEO of Tavanir, has announced a reward of 1 million toman (approximately $24 at the current exchange rate) for each report of unauthorized cryptocurrency mining equipment. Mashhadi highlighted that opportunistic individuals are exploiting subsidized electricity and public networks for mining purposes, which has resulted in an abnormal spike in electricity consumption. This surge has caused significant disruptions within the country’s power grid.

Discovery of Illegal Mining Operations

Mashhadi reported that authorities have uncovered 230,000 illegal crypto-mining rigs, which together consumed up to 900 megawatts of electricity. This level of consumption is comparable to that of an Iranian province with a population of 1.4 million. The illegal mining operations often utilize free or subsidized electricity, sometimes set up in schools and mosques.

Impact of Crypto Mining on Power Supply

Crypto mining, a process that involves solving cryptographic puzzles using specialized computers to earn cryptocurrency rewards, is highly energy-intensive. Bitcoin (BTC) remains one of the most popular proof-of-work cryptocurrencies. The recent Bitcoin halving event in April reduced mining rewards by 50%, leading some publicly traded Bitcoin miners in the U.S. to face financial losses and pivot to backing artificial intelligence for better profitability.

Global Context and Similar Measures

Iran’s approach mirrors Venezuela’s recent ban on crypto mining, which was implemented to safeguard the national power grid from excessive energy consumption. As countries worldwide grapple with the balance between advancing technology and managing energy resources, Iran’s measures highlight the growing concern over the impact of cryptocurrency mining on national infrastructure.