Tehran Stock Exchange Company said it has received a verdict from the courts regarding the illegal possession and operation of 82 illegal cryptocurrency mining machines worth 25 billion rials ($61,000).
The TSE's trading symbol, which is the company responsible for the miners, has been halted, Ecoiran reported.
The illegal possession and operation of the 82 miners was discovered by the Economic Security Police after the goods were confiscated from the TSE's building.
The investigation revealed that the equipment was bought using the company's financial resources. However, the company failed to provide any evidence in support of its case, claiming that the goods were legally imported and all duties and taxes had been paid.
As the possession of smuggled goods is considered a violation of the law, the judiciary has held the company accountable for the violation and imposed 309 billion rials ($750,000) in fine on the company in addition to the confiscation of the smuggled material.
As per the verdict, the TSE's decision to allow the illegal possession and operation of cryptocurrency mining equipment is a direct violation of Iran's laws regarding the import and export of goods and foreign currency, and the company and its managers are not exempt from legal responsibility.
The TSE has not yet commented on the impact of the verdict on its operations, but the trading of the related symbol has been suspended.
First Vice President Mohammad Mokhber in November had announced new rules for crypto assets, in addition to those approved in 2019.
As per these rules, cryptominers are obliged to receive special permits from the Ministry of Industries, Mining and Trade for importing equipment and the approval of the Iran Standard Organization for using them.
Later, the government outlined details about supplying power to mining centers. Licensed miners have been given options for accessing electricity for their farms, including the establishment of on-site renewable power plants, or using their own small power generators.
Miners using electricity and natural gas have to pay their bills based on electricity export tariffs and must reduce operations by half in the summer season.
Electricity prices for cryptomining are subject to currency rates at Nima – the currency platform where forex is purchased by importers from exporters.
Rules require the ministries of oil and energy to announce power rates on a quarterly basis and inform miners about peak season adjustments in advance.
In the past tax breaks were offered to miners who repatriated their earnings to the country. However, the government later decided to end such exemptions and treat cryptominers like other exporters.
Cryptocurrency mining centers can be established in the free trade zones where local authorities are in charge of licensing instead of the Industries Ministry.
Among other things, the new regulations state that mining crypto assets by using power (natural gas or electricity) allocated for any other purpose is illegal and those in breach will be penalized.
Before imposing penalties in the past, the main utility company Tavanir used to confiscate illegal cryptomining equipment, cut electricity and oblige offenders to pay for damages inflicted on the national grid.
However, Tavanir has urged policymakers to tighten the rules targeting illegal miners and insists that “the existing regulations are not preventative enough.”
According to Tavanir, more than 7,200 unauthorized cryptomining centers have been identified and closed since 2020, which used 3.84 trillion rials ($16.5 million) in subsidized electricity and inflicted 380 billion rials ($1.3 million) in damages on the national grid.
Observers, however, say the new rules do not go far enough in addressing the deficiencies and preventing losses.
The Majlis Research Center, the research wing of the parliament, has also taken a stance on the negative impact of the government’s regulations on cryptomining and dismissed them as a failure.
Like previous regulations, the new rules only cover mining of cryptocurrencies and extends the ban on trading cryptos.
"Traders should take responsibility for using cryptocurrencies and beware that the risks will not be covered or compensated by the government and banks," it said.
The Central Bank of Iran is tasked with developing a platform through which licensed miners can sell cryptos for importing goods.
