Some of the equipment seized from unauthorized crypto mining farms has been released by an Iranian government agency in charge of state property. In the Islamic Republic, where unlicensed miners have been held responsible for power shortages, the agency’s top executive explained that the courts there had ordered them to do that.
Some of the mining equipment seized in raids on underground cryptocurrency farms has begun to be returned to miners by Iran’s Organization for Collection and Sale of State-Owned Property (OCSSOP). Iranian courts mandated it, according to the English-language business daily Financial Tribune.
Quoted by the country’s Ministry of Economic Affairs and Finance, the head of the organization, Abdolmajid Eshtehadi, detailed:
Currently, some 150,000 [units of] crypto mining equipment are held by the OCSSOP, a large part of which will be released following judicial rulings. Machines have already been returned.
The official went on to say that the Iran Power Generation, Transmission and Distribution Company (Tavanir) should present ideas for using the mining equipment without endangering the national grid.
Iran legalized cryptocurrency mining in July 2019, but has since stopped authorized coin minting operations on several occasions, citing power shortages during the summer and winter seasons when electricity consumption increases. Additionally, it has been harshly prosecuting Iranians who mine illegally.
The Ministry of Industries, Mining, and Trade issues licenses and import permits to businesses that want to mine legally. The Iran Standard Organization must approve the equipment, and miners must pay export rates for electricity.
Iran forbids the mining of cryptocurrencies using energy or natural gas intended for other uses and consumers. However, as they avoid obtaining the necessary licenses that would require them to pay the much higher tariffs, underground mining installations powered by the less expensive, subsidized energy have been multiplying.
The state-run Tavanir has been cutting off the electricity to any facilities that have been found to be engaged in illegal mining over the past couple of years, seizing their machinery, and fining the operators for harm done to the national distribution network.
The utility has discovered and shut down 7,200 illegal crypto mining operations since 2020. It promised in July 2022 to take harsh action against illegal cryptocurrency miners who, by some estimates, had used up $36.5 million worth of government-subsidized electricity.
The release of the mining equipment occurs in spite of a prohibition on such actions by the Prosecutor General’s Office until the Iranian parliament passes legislation addressing the problem with illegal mining. The Tehranian government approved a comprehensive set of crypto regulations in August, and in September it began issuing licenses to mining companies in accordance with the new regulatory framework.
