• Wed. Nov 20th, 2024

Bitcoin Mining Rigs Cause Blackout In Iran

Phillip Seefeldt

ByPhillip Seefeldt

Jan 19, 2021

Cryptocurrency’s adoption could go mainstream soon, with several countries seeing and embracing those platforms’ importance. In the past, the mission behind the asset’s creation confused many, not seeing the idea behind the decentralized system. Now, citizens of different countries globally enjoy fast and direct transactions without much restrictions or time wastage.

Several countries recognize the need for efficient regulations, but that did not stop world powers from revealing plans of creating digital assets independently. China, being the primary influence behind digital currencies for the central bank, has been working on its digital yuan for many years but still keeping sensitive information from the public. When countries started accommodating cryptos, Iran was one of the nations that readily establish the system for the innovation’s adoption in the region.

Iran authorities seize illegal mining gears

Like many industries, crime in the digital asset sector continues to grow even with laid down rules against illegal BTC mining. On Monday, people revealed that the government seized some illegal equipment that miners use to mine Bitcoin. The source explained that authorities made away with around 45,000 gears owned by the illegal miners. The Iranian government found out that the actors used ASIC machines after Tavanir revealed some suspicious power consumption activities.

The power company made sufficient inquiry, which resulted in the new information gotten. The state-owned firm executives explained that the rigs manipulated systems to allow them to use electricity without paying as much as they should. Thankfully, with new regulations streamlining mining operations, the nation could fish out the activities in its Energy sector. Looking at the state laws on mining, the miners have to follow some identification rules by revealing personal details about themselves and their business. The mining ministry will receive the details from the miners to keep for future purposes.

Iran government mandates data submission by mining outfits

To differentiate legal and illegal mining firms, the government mandates all mining outfits to submit their details, such as equipment sizes and types. Some mining firms planning to evade government laws led to a compulsory requirement by the government for the outfits. The criminals will pay hefty fines if caught illegally mining crypto on their hardware, while those who manipulate the electricity rate would be fined $20,000 for their offenses. The country wants crypto operations to follow the global standard, being the reason it mandates personal details.

Some time ago, the state-owned power company conducted another investigation to find unregistered mining outfits, where it eventually found a thousand firms not unapproved by the government. The energy company clarified that the consumption rate of power increased during their illegal mining activities, and bodies set up adequately found the cause of the problem.

Unfortunately, the increased crypto mining made the country face environmental issues, since it has to consume more resources to produce enough electricity. The bad power situation led to several blackouts necessitating more efforts by the state to reduce power consumption. Other countries have publicly announced their support for the digital asset industry as they accommodate them in various ways.

Phillip Seefeldt

Phillip Seefeldt

Phillip Seefeldt is a skilled and perceptive news writer known for his comprehensive analysis and engaging writing style. With a commitment to accuracy and a deep understanding of current affairs, his articles provide readers with insightful perspectives and thought-provoking insights.

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