Iran has drafted new rules to increase penalties for illegal cryptocurrency mining in the country, including additional fines and imprisonment. “Any use of subsidized electricity intended for household, industrial, agricultural and commercial subscribers to mine cryptocurrency is prohibited.”

New penalties for illegal cryptocurrency mining in Iran

An official with Iran’s Energy Production, Distribution and Transmission Company (Tavanir) said the country’s government will approve new rules to increase penalties for unauthorized cryptocurrency mining, the IRNA publication reported Sunday.

Mohammad Khodadadi Bohlouli stated that under the new law:

The increased penalties include increasing the fines by a minimum of three times and a maximum of five times, imprisonment of the offender, and removal of the offender’s business license.

“Any use of subsidized electricity intended for household, industrial, agricultural and commercial subscribers to mine cryptocurrency is prohibited,” Khodadadi said.

The Iranian government approved cryptocurrency mining as an industry in 2019. In January 2020, the Ministry of Industry, Mining and Trade issued over 1,000 licenses for cryptocurrency mining.

However, Iranian authorities said some unauthorized miners are using household electricity for cryptocurrency mining, causing major problems for the country’s electricity industry. In December last year, crypto miners were ordered to shut down operations to prevent winter power outages. Authorities reportedly seized over 220,000 mining machines and shut down nearly 6,000 illegal crypto mining farms across the country in September.

What do you think of Iran increasing penalties for unauthorized cryptocurrency mining? Let us know in the comments section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economics and cryptography.

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