Iran Offers $24 Reward for Reporting Illegal Cryptocurrency Mining – CoinAero

CoinAero
3 Min Read


     Key Takeaways :

  • Iran’s extreme heatwave and outdated electricity infrastructure have led to severe power shortages
  • Power outages have prompted the government to crack down on illegal cryptocurrency mining.

In a surprising move, Iran’s government has introduced a $24 bounty for individuals who report illegal cryptocurrency mining operations. This initiative comes in response to the country’s ongoing power crisis, exacerbated by a severe heatwave that has pushed Iran’s aging electricity infrastructure to its limits. 

With temperatures reaching 50°C (122°F) in some areas, the demand for electricity has surged, leading to widespread blackouts and disruptions.

Iran's  Bounty For Crack Down on Illegal Cryptocurrency Mining

(Source: @extremetemps)

The bounty program, announced by Tavanir CEO Mostafa Rajabi Mashhadi, aims to curb the unauthorized use of subsidized electricity for mining activities, which has significantly strained the national grid.

According to Mashhadi, illegal mining rigs have consumed up to 900 megawatts of power—equivalent to the electricity consumption of a province with 1.4 million residents.

While the government’s approach seeks to address the immediate power shortages, it also raises ethical concerns. Encouraging citizens to report on their neighbors could foster a climate of mistrust and social division. 

Additionally, this crackdown might deter investment in Iran’s burgeoning cryptocurrency sector, stifling innovation and economic growth in an industry with significant potential.

Iran has a history of discovering illegal mining operations in public institutions like schools and mosques, which benefit from free or heavily subsidized electricity.

The government’s recent efforts are part of a broader strategy to regulate the cryptocurrency market and prevent the unauthorized use of resources, but the long-term impact on the country’s social fabric and economic prospects remains uncertain.

Crypto mining is a process that demands significant energy and advanced technology, where specialized computers work to solve complex cryptographic puzzles in exchange for rewards paid in cryptocurrency. Bitcoin, the most well-known proof-of-work blockchain, is at the forefront of this practice. However, in April, the rewards for Bitcoin mining were slashed by 50% during the Bitcoin halving event, causing many publicly traded Bitcoin miners in the United States to incur losses. In response, some miners have pivoted to supporting artificial intelligence to maintain profitability.



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