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The Iranian government has announced that they will be increasing the penalties for using the country’s subsidized energy to mine Cryptocurrency.
This, they believe, is a necessary move as the country has faced lots of energy shortages in recent years, hence the country’s tightening of the mining regulations.
The company in charge of the generation, distribution, and transmission of power in the country gave out a statement of the government’s plans.
As revealed in the statement, the country is going to increase the rates of the fines for the crypto mining operators that use the country’s subsidized energy.
The law states that subsidized electricity in Iran is only meant for households, commercial, agricultural and industrial subscribers. So, using it to mine Cryptocurrency is prohibited.
The fines for using subsidized energy to mine Cryptocurrency will now rise by a minimum of 3 and a maximum of 5 times. A repeated violation will most likely lead to the revocation of the offender’s business license.
It may also lead to the imprisonment of the offending crypto miner.
Before all these laws, Cryptocurrency mining operations were legal in Iran. They have also been subject to a licensing process right from 2019.
In fact, between 2019 and January 2020, the Ministry of Industry, Mining, and Trade had issued more than a thousand mining licenses.
However, due to certain challenges to the nation’s energy grid, the president announced a temporary ban on crypto mining operations in the country.
So, these fines are precautionary methods to prevent more problems to the power grid.