According to local media reports in Iran, Iran’s Tavanir Energy Generation, Distribution and Transmission Company has closed 1,100 illegal Bitcoin mining farms in the country.

These violators were reported by people seeking a government-set reward of 100 million riyals (about $2,400) for those who report violators of cryptocurrency mining laws.

Mr. Mustafa Rajabi Mashhadi, Vice President of Tavanir Company, told Fars News Agency the following:

Earlier we had a problem in discovering all the illegal mining farms by studying their consumption patterns only, so we used the whistleblowers and motivated them with money.

He added:

Some miners have set up equipment in industrial and agricultural units that already use intense energy to avoid detection.

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Therefore, monitoring “Tavanir” reveals that there is no significant change in the consumption of this particular category.

The Iranian government is fighting the smuggling of mining equipment:

Since 2019, the Iranian government has issued 624 permits to mining farms, according to reports “Financial Tribune” But some farms that are already licensed do not operate.

Last month, Iranian Vice President Eshaq Jahangiri Kohshahi said that all miners would soon be required to register with the government.

The biggest factor that attracts cryptocurrency miners to Iran is cheap electricity, as Iran is one of the countries that offers lower electricity prices compared to other regions.

According to official data, the country’s mining farms pay less than 4,800 riyals ($0.01) per kilowatt-hour of electricity, but prices quadruple to 19,300 riyals ($0.05) during the peak summer season, from June to September.

The state electric company previously announced in July that it would cut up to 47% of its electricity tariff for miners during peak consumption periods in an effort to stimulate legal mining.

However, in order for miners to qualify for this government announced incentive, they will need to participate in Tavanir’s “energy efficiency projects”.

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In general, the Iranian government is seeking to attract more miners as both a political and economic strategy, driven primarily by the desire for financial freedom from bypassing the US economic embargo.

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