Iranian Impact on Crypto Mining


An Iranian court ordered the government to return thousands of arrested crypto miners, local media reported last week.

In 2021, Iran’s government banned mining and seized related equipment to meet energy shortages. Last year, the electricity company, Tavanir, also engaged in illegal crypto mining in search of electricity during the summer, according to reports. The company shut down 7,200 illegal cryptocurrency mining companies and seized more than 250,000 mining computers.

About 150,000 crypto-mining assets are held by the Government’s Organization for Collection and Marketing, most of which will be released following the court’s decision, according to reports, citing the official of the organization, Abdolmajid Eshtehadi. Some have already been restored. Eshtehadi said, Tavanir “should come up with a new strategy to use [the rest], without damaging the national grid,” Eshtehadi said.

Inside Iranian Attacks and Bitcoin Mining Attacks

Iranian has cracked down on mining, but it also wants to use crypto mining to increase the country’s restricted currency. Iran is trying to make crypto mining a source of state revenue, while undermining miners.

Iran, which has been hit hard by international sanctions, has gained income from oil exports. Crypto can be another way to earn money, so Iran has managed and domestic miners are trying to manage the income well.

Since last year, Iran has also opened up new opportunities for foreign mining companies. Iran is a prominent player in the bitcoin mining market, and in 2020 it provided almost 4% of the global bitcoin hashing power, according to a study by the University of Cambridge. But Iran’s relationship with the miners has been described as complicated.

Similarly, Iranian clearly sees crypto mining as a way to generate revenue for the state. Last year, Iran began requiring miners to register with the Ministry of Industry, Mines and Trade and pay higher electricity prices than retailers or factories. But Iran has blamed bitcoin miners for the recent firestorm. This month alone, Iranian authorities say they have seized 1,620 unregistered vehicles and seized 45,000 mining equipment.

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