[2021-10-10] Iran's power company warns of cuts due to illegal crypto mining

[Woodie]

Illegal cryptocurrency mining in Iran risks causing new power cuts this winter, the state electricity company warned Sunday.

Iranian officials regularly accuse unlicensed cryptocurrency miners of using vast amounts of electricity.

Illegal cryptocurrency mining will account for at least "10 percent of electricity outages this winter", the power company said in a statement carried by state news agency IRNA.


Such illegal mining was responsible for 20 percent of blackouts over the summer, it added.

Iran was among the first countries in the world to legalise the mining of bitcoin and other cryptocurrencies in September 2018, but it requires miners to have a licence.

Authorities said in May that "illegal" miners who usually have access to subsidised electricity consume between six and seven times more power than those with permits.

The same month, Iran announced a temporary ban on all cryptocurrency mining, a day after the energy minister apologised for unplanned power cuts in major cities.

Authorities lifted the ban in mid-September.

Iranian news agencies have reported frequent police raids on "illegal farms" for cryptocurrency.

Profitably creating, or mining, bitcoin and other cryptocurrencies requires masses of computers dedicated to solving deliberately complicated equations -- an endeavour that globally consumes more electricity than some entire nations.

An Iranian official last month suggested that cryptocurrencies could be used to overcome problems related to international sanctions imposed on the Islamic republic

Read more https://www.france24.com/en/live-news/20211010-iran-s-power-company-warns-of-cuts-due-to-illegal-crypto-mining

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[Argoo]

There are probably similar problems in every country, and not only in the field of cryptocurrency mining. If government agencies can determine how much energy is consumed by unlicensed miners when mining cryptocurrency, then they can find violators. This is not a cryptocurrency problem. This is a problem of compliance with legal norms and it must be solved by the relevant civil servants, who change this into official duties.
Now we are witnessing an energy crisis in many states. This is despite the fact that it is becoming cheaper to obtain energy from renewable sources, since the cost of producing such energy is getting cheaper. Here the problem is more of the correct organization of energy production, rather than its consumption.

[NeuroticFish]

Authorities said in May that "illegal" miners who usually have access to subsidised electricity consume between six and seven times more power than those with permits.

It's simple: set a monthly limit for subsidized electricity. Whoever is using more than the limit needs industrial "package" at different price and with regular verification of the business. And if those are crypto miners, well, they will be punished/fined and will have to get to legality in order to continue their operations.
I don't want to take sides, but to me it looks like they prefer to throw stones instead of doing their job properly.

[LeGaulois]

The funny thing is the 'illegal crypto miners' could actually mine BTC legally. It's rather because the Iran government wants to control the electricity and indirectly, the miners. In other words, you're illegal if you're a freelance, but you're legal if you follow the government.

If they really have so many uncontrolled outages, I guess they have very shitty infrastructures. Otherwise, it means the country is very very very poor

Come to Europe, actually, it's the best time, you will also see a major problem with the electricity market. It's all over the news everyday.

[SFR10]

Iranian officials regularly accuse unlicensed cryptocurrency miners of using vast amounts of electricity.
~Snipped~
Iranian news agencies have reported frequent police raids on "illegal farms" for cryptocurrency.

They're really great at accusing others but awful at catching them! Oops! I forgot they "can't" catch most of these so-called illegal farm operators due to having close ties with the government ^{[corruption at its finest]}!
^{- In regards to the second line, they might do a few for a show but that's nothing in comparison to the ones that they know and protect.}

The same month, Iran announced a temporary ban on all cryptocurrency mining, a day after the energy minister apologised for unplanned power cuts in major cities.

Authorities lifted the ban in mid-September.

There was never really a ban ^{[those with close ties with the government, continued their operation in that period]}.
^{- "There are always two sides to a story".}

[cr1776]

...
Authorities said in May that "illegal" miners who usually have access to subsidised electricity consume between six and seven times more power than those with permits.
...

Or let people pay for what they use instead of making other people pay for it at market rates.  Why should person X have to pay for person's Y's usage?

[Neeya0323]

The funny thing is the 'illegal crypto miners' could actually mine BTC legally. It's rather because the Iran government wants to control the electricity and indirectly, the miners. In other words, you're illegal if you're a freelance, but you're legal if you follow the government.

If they really have so many uncontrolled outages, I guess they have very shitty infrastructures. Otherwise, it means the country is very very very poor

Come to Europe, actually, it's the best time, you will also see a major problem with the electricity market. It's all over the news everyday.

I think more of them are stealing electricity for mining, so a lot of electricity is not available without a charge for this to happen

[LeGaulois]

The funny thing is the 'illegal crypto miners' could actually mine BTC legally. It's rather because the Iran government wants to control the electricity and indirectly, the miners. In other words, you're illegal if you're a freelance, but you're legal if you follow the government.

If they really have so many uncontrolled outages, I guess they have very shitty infrastructures. Otherwise, it means the country is very very very poor

Come to Europe, actually, it's the best time, you will also see a major problem with the electricity market. It's all over the news everyday.

I think more of them are stealing electricity for mining, so a lot of electricity is not available without a charge for this to happen

No, It' because you need to get a license to mine cryptocurrency there, and the persons didn't have any. If they were stealing electricity, it's something the Iran government wouldn't forget to scream.
If you read the article, it says they had access to subsidised electricity

Additionally, they said 10% or 20% (I don't remember since) of electricity outages this winter will be caused by their 'illegal BTC miners'
10%, It is very small in reality. It is mostly a trick from the government to find another 'bad guy' and to avoid being criticized

[cafucafucafu]

This is just a band-aid solution.

But it does make sense for the government to blame the bitcoin miners because they do need scapegoats one way or another.

If they were serious about fixing the issue they would make the electricity grid more efficient so that everyone can get better coverage, instead of blaming bitcoin miners for what they have done.