Parliament Speaker:
Using Subsidized Power for Bitcoin Mining ‘Illegal’
TEHRAN (Dispatches) – Iran’s Parliament Speaker Ali Larijani says using subsidized electricity available to industrial businesses to mine bitcoins is illegal.
Bitcoin miners using cheaper electricity for Iranian industries are breaking the law, as the heavy power consumption for producing digital currencies reduces the efficiency of local production, he said.
The speaker underlined the need for serious action against violators, saying he will discuss the matter with the energy ministry officials.
Last week, Iranian authorities seized around 1,000 bitcoin mining machines from two abandoned factories in Yazd.
A spokesman for the energy ministry has said cryptocurrency mining operations were destabilizing the power grid and affecting electrical access for households and businesses in Iran.
Officials said last month that the government has started identifying bitcoin miners who are being blamed for an unprecedented surge in electricity use in some provinces.
"Identifying miners has its own methods that are on the agenda of the regional power distribution companies,” Mostafa Rajabi Mashhadi, a spokesman for the Energy Ministry, said.
The low cost of electricity in Iran has reportedly attracted operators from around the world, including Armenia, France and Ukraine. Bitcoin miners are said to be basing their operations in locations with access to subsidized electricity, such as factories, agricultural sites, government offices and mosques.
Iran is one of the most energy-intensive countries of the world, with per capita energy consumption 15 times that of Japan and 10 times that of the European Union.
Also due to huge energy subsidies, the energy intensity in Iran is three times higher than global average and 2.5 times the Middle Eastern average.
Bitcoin mining requires large amounts of power because of the way its underlying system has been set up. In the process, high-powered computers are used to solve difficult math problems in competitions, with the users rewarded with bitcoins.
Last week, the energy ministry published a report on power consumption across the country, which put the central Semnan province in the red for the highest utilization rate.
As for power consumption, the small province reportedly dwarfed the vast southern province of Khuzestan which is currently coping with scorching temperatures.
Other most energy-intensive provinces were Qazvin, Markazi, Khorasan Razavi and the Iranian Kurdistan, the report said.
"The high consumption by cryptocurrency miners has led to some electricity supply instability and even damage to other electricity users,” Rajabi Mashhadi said.
"If the trend continues, those subscribers who are found to be making unauthorized electricity use will face legal action,” he added.
Bitcoin miners using cheaper electricity for Iranian industries are breaking the law, as the heavy power consumption for producing digital currencies reduces the efficiency of local production, he said.
The speaker underlined the need for serious action against violators, saying he will discuss the matter with the energy ministry officials.
Last week, Iranian authorities seized around 1,000 bitcoin mining machines from two abandoned factories in Yazd.
A spokesman for the energy ministry has said cryptocurrency mining operations were destabilizing the power grid and affecting electrical access for households and businesses in Iran.
Officials said last month that the government has started identifying bitcoin miners who are being blamed for an unprecedented surge in electricity use in some provinces.
"Identifying miners has its own methods that are on the agenda of the regional power distribution companies,” Mostafa Rajabi Mashhadi, a spokesman for the Energy Ministry, said.
The low cost of electricity in Iran has reportedly attracted operators from around the world, including Armenia, France and Ukraine. Bitcoin miners are said to be basing their operations in locations with access to subsidized electricity, such as factories, agricultural sites, government offices and mosques.
Iran is one of the most energy-intensive countries of the world, with per capita energy consumption 15 times that of Japan and 10 times that of the European Union.
Also due to huge energy subsidies, the energy intensity in Iran is three times higher than global average and 2.5 times the Middle Eastern average.
Bitcoin mining requires large amounts of power because of the way its underlying system has been set up. In the process, high-powered computers are used to solve difficult math problems in competitions, with the users rewarded with bitcoins.
Last week, the energy ministry published a report on power consumption across the country, which put the central Semnan province in the red for the highest utilization rate.
As for power consumption, the small province reportedly dwarfed the vast southern province of Khuzestan which is currently coping with scorching temperatures.
Other most energy-intensive provinces were Qazvin, Markazi, Khorasan Razavi and the Iranian Kurdistan, the report said.
"The high consumption by cryptocurrency miners has led to some electricity supply instability and even damage to other electricity users,” Rajabi Mashhadi said.
"If the trend continues, those subscribers who are found to be making unauthorized electricity use will face legal action,” he added.