Iranian Authorities Impound 1,000 Bitcoin Mining Machines

Power officials in Iran have seized 1,000 bitcoin mining machines in two abandoned factories turned into mining farms in the central province of Yazd, Iran. The officials claim the cryptocurrency mining equipment was seized because their operators illegally made use of government-subsidized electricity, according to a Tech2 report on June 28, 2019.

Illegal Bitcoin Miners Nabbed 

Per sources close to the matter, Iranian officials have impounded at least 1,000 bitcoin mining machines in two abandoned factories that have been turned into makeshift bitcoin mining facilities in the central province of Yazd.

As reported by BTCManager earlier in June 2019, Iran’s Deputy Minister for Energy, Homayoun Haeri pulled the plug on subsidized electricity for digital assets mining purposes in the nation, citing increasing costs and energy abuse.

At the time, the authorities made it clear that the near collapse of Iran’s economy caused by the severe international sanctions had made it impossible for them to continue paying nearly $1 billion annually for electricity subsidies.

Against that backdrop, the government appealed to energy consumers to reduce power wastage, while also stating categorically that bitcoin miners will no longer enjoy electricity subsidy like regular users.

Iranian Bitcoin Miners Adamant

Despite the warnings from the ministry of power, Iranian miners have continued to engage in the act, leaving a huge hole in the government’s pocket.

According to Arash Navab, an official of the power department in the central province of Yazd, the two mining farms gulped a whopping one megawatt of electricity, which is enough to serve a whole community. 

An unnamed spokesperson of the Energy Ministry also told local sources that the activities of the two mining farms alone triggered a 7 percent increase in power consumption in June.

Bitcoin the Only Way Out 

Just like India, the central bank of Iran has since barred banks from servicing bitcoin-linked businesses in the state due to money laundering concerns.

However, the dwindling fortunes of the state have made it almost impossible for even the government to totally ignore cryptocurrency, as the stateless nature of the nascent digital assets has all it takes to save Iran from its current predicaments.

In January 2019, BTCManager informed that Iran was putting the finishing touches to its state-backed cryptocurrency named crypto Rial.

While the entire region awaits the official launch of the crypto Rial, businesses in the state have turned to bitcoin (BTC) and other digital assets to remain afloat, a strong indication that cryptos have come to stay in Iran.