Iranian authorities have so far cleared 30 facilities for mining cryptocurrency. Crypto-mining farms are spread across several regions, including Tehran province. The government released the data amid a crackdown on illegal minors in the country.
One-third of licensed mining farms are based in two provinces
Iran’s Ministry of Industries, Mines and Trade has licensed 30 cryptocurrency mining centers, the Financial Tribune revealed this week, citing official figures published on the department’s website. One of these mining farms is based in the province of Tehran, where the national capital is located.
Semnan Province, the administrative region east of Tehran, is home to the most licensed facilities, with six crypto farms. Alborz province is next with four, followed by Mazandaran, East Azerbaijan and Zanjan provinces.
The ministry also issued 2,579 establishment permits for new industrial units across the Islamic Republic, including 305 in Zanjan province. The province of Fars, with 262 permits, and West Azerbaijan, with its 247, are ranked second and third respectively, detailed the Iranian English-language daily.
Iran approved cryptocurrency mining as a legal activity two years ago. The government has introduced a licensing regime for entities wishing to get involved in the industry. A report said 14 bitcoin mining farms were operating under such licenses last summer.
Iranian miners face changing tides
High cryptocurrency prices and low energy costs – licensed miners were initially offered a discount of nearly half the regular electricity rate – have made cryptocurrency mining an attractive business in Iran. Things have changed, however, and this year’s power shortages have been blamed in part on the energy-intensive coin minting process.
In May, authorities said they would unplug licensed cryptocurrency miners during peak power consumption hours. According to government estimates, licensed mining facilities consume around 300 megawatts of electricity per day.
Tehran has also attacked illegal miners, accusing them of burning more than 2,000 megawatts per day. According to the state-owned electricity company, Tavanir, the country’s electricity deficit stands at 5,000 megawatts. Ultimately, Iran decided to ban crypto mining altogether, until September 22.
In a year, Iranian law enforcement has shut down more than 180 crypto farms in Tehran province alone. Earlier in June, authorities confiscated 3,000 units of mining equipment from illegal companies. Last week, Iranian police seized 7,000 bitcoin mining machines.
What are your expectations for the future of cryptocurrency mining in Iran? Let us know in the comments section below.
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