As bitcoin and other cryptocurrency prices jump, officials in Tehran have come up with new measures to prevent illegal use of subsidized electricity.
According to Mostafa Rajabi Mashhadi, spokesman at the Power Generation, Distribution and Transmission Company (Tavanir), the ICT Ministry has started analyzing users' internet traffic in order to detect cryptomining.
"We are coordinating with the ICT ministry to see network traffic of users and detect unruly cryptominers," IRNA quoted him as saying on Sunday.
Tavanir is legally authorized to shut down illegal crypto mining businesses. In July 2019 the government said it would recognize crypto mining as a legal industry. This was first welcomed by miners, but later they claimed that the electricity tariffs were too high and went underground with their business to deceive the utilities.
As per earlier announcements, miners are charged 4,800 rials for one kilowatt-hour that is half the electricity export rate in autumn, winter and spring. However, billings are to be based on 19,300 rials/kw, twice the price for exported electricity in summer (June to Sept).
The steep rise in the price of cryptocurrencies in recent weeks has apparently made mining more tempting for Iranians. The price of bitcoin is soaring and last week was over $40,000 for the first time. It doubled in less than a month and has jumped by more than 700% since the pandemic was first declared in March last year, rising from about $5,000.
Almost 500 cryptomining farms have been reportedly uncovered with the help of whistleblowers. So far 24 cryptomining units using 310 MW have permit from the Ministry of Industries, Mining and Trade, he said.
"Nearly 1% of the country's power output is being used by legal cryptocurrency mining farms," Tavanir said. The official noted that those who use subsidized power, such as unlicensed miners, will be fined depending one losses they impose on the national grid. "Their mining places will by disconnected from the national grid and wrongdoers will face prosecution."
