Iran to return confiscated cryptocurrency mining machines

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Started returning some of the mining machines

Iranian authorities have said they will return some of the confiscated cryptocurrency mining machines to their owners following a court order. Local media Financial Tribune reported.

Abdolmajid Eshtehadi, head of the Organization for the Collection and Sale of State Property (OCSSOP), an organization affiliated with Iran’s Ministry of Economy and Finance, explained:

About 150,000 cryptocurrency mining machines are currently in possession of OCSSOP, most of which will be released following a judicial decision. The return of the machine has already started.

Eshtehadi continued, “Iran’s state-owned power generation, transmission and distribution company, Tavanir, needs to come up with a new plan to make use of mining machines without damaging the country’s power grid.”

The reason for the partial return of mining machines has not been reported at this time.

Cryptocurrency mining situation in Iran

Iran legalized bitcoin mining in 2019 and introduced a licensing system for operators. However, since registered mining companies need to buy electricity at higher rates than usual, there continued to be illegal operators who did not register their licenses.

Licensed businesses must also obtain permission from the Ministry of Industry, Mining and Trade to import mining machines. Also, mining machines must be licensed by authorities before use.

It is also illegal to mine virtual currency using contracted electricity for purposes other than cryptocurrency mining.

Tavanir will close over 5,300 illegal mining farms by September 2022. It is said that more than 210,000 mining machines have been seized. Tavanir had previously claimed that illegal miners had caused about 1.2 billion yen (380 billion IRR) in damage to the national power grid.

Iranian authorities have also cut power supplies to licensed mining companies due to the seasonal power crunch. It is a form of temporary suspension of power supply to registered business operators during periods when demand for electricity increases domestically due to temperature fluctuations in summer and winter.

association: Iran suspends power supply to cryptocurrency mining operators

Source: Cambridge Center for Alternative Finance

Along with these measures, Iran’s share of the global Bitcoin (BTC) hashrate has also changed. Other countries such as the United States are increasing their share, but for example, according to the Cambridge University Center for Alternative Finance (CCAF), as of March 2021, the share was 7.5%, but as of January 2022, it had fallen to 0.2%. ing.

What is hash rate

Mining mining speed. In Japanese, it is expressed as “mining speed”. The unit is “hash/s”. “s” stands for “second” and represents “how many calculations can be done per second”. It is used as an index to show the processing power of mining equipment and how fast cryptocurrency mining is done.

▶Cryptocurrency Glossary

Used for settlement of import payment

The Iranian government is also eyeing cryptocurrencies to combat US sanctions, and in August 2022 enacted regulations for using cryptocurrencies to pay for import transactions. In the same month, he also revealed that he had made his first import order worth 1.4 billion yen using virtual currency.

association: The Iranian government enacts regulations that allow virtual currency payments for imports from overseas

The post Iran to return confiscated cryptocurrency mining machines appeared first on Our Bitcoin News.

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