Iran is asking its citizens for help in dealing with a severe power crisis by offering $20 rewards to those who report illegal crypto miners. As the country faces rolling blackouts and energy shortages due to an intense heatwave, the government hopes that involving the public will help ease the burden on its strained electricity grid.
The initiative comes as Iran experiences one of its worst power crises in recent memory, driven by a combination of high temperatures and the widespread use of electricity for unauthorized crypto mining. According to Iran International report, the government is offering these rewards to encourage people to come forward with information that can lead to the identification and shutdown of illegal mining operations.
The Link Between Crypto Mining and Power Shortages
Crypto mining is a process that requires a lot of electricity, and in Iran, where electricity is heavily subsidized, it has become a popular activity. However, many of these operations are unlicensed and operate in secret, consuming vast amounts of electricity without contributing to the grid. This has become a major issue, especially during the current heatwave, which has pushed energy demand to its limits.
Mostafa Rajabi Mashhadi, the head of Iran’s state electricity company, Tavanir, explained that illegal crypto mining is a significant factor in the country’s ongoing power shortages. “Opportunistic individuals have been exploiting subsidized electricity and public networks to mine cryptocurrencies without proper authorization. This unauthorized mining has led to an abnormal surge in electricity consumption, causing significant disruptions and problems within the country’s power grid.” said Mashhadi.” he said.
The government’s decision to offer $20 for reporting illegal crypto miners highlights how serious the situation has become. With more than 230,000 illegal mining devices already identified, the authorities are struggling to keep up with the scale of the problem. These devices are estimated to consume between 800 to 900 MW of electricity, which is roughly equivalent to the power used by an entire province.
By involving the public, the government hopes to speed up the process of identifying and shutting down these illegal operations. The idea is that with more eyes on the ground, it will be easier to find and stop the crypto miners who are using up valuable electricity.
A Broader Crackdown on Illegal Activities
This initiative is part of a larger effort by the Iranian government to crack down on various illegal activities that are contributing to the country’s economic and energy problems. Since 2022, Iranian intelligence services have targeted over 9,000 accounts linked to 454 individuals involved in illegal trading, according to reports. The crackdown on illegal crypto miners is seen as a way to protect the country’s resources and ensure that electricity is used responsibly.
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International Concerns About Iran’s Crypto Mining
Iran’s crypto mining activities have also raised concerns internationally, particularly in the United States. In May, U.S. senators Elizabeth Warren and Angus King called for an investigation into how Iranian crypto miners might be helping the country evade U.S. sanctions.. They worry that the money made from mining could be funding terrorist groups or supporting Iran’s military activities.
These concerns have added another layer of complexity to Iran’s domestic energy crisis. The possibility that illegal crypto mining could have broader geopolitical implications has put more pressure on the Iranian government to address the problem quickly and effectively.
What This Means for the Future
The decision to offer rewards for reporting illegal crypto miners is a clear sign that the Iranian government is taking the power crisis seriously. By involving the public, the authorities hope to quickly identify and eliminate unauthorized mining operations, which could help stabilize the electricity grid and reduce the frequency of blackouts.
However, the success of this initiative will depend on the willingness of citizens to participate and the ability of the government to act on the information they receive. If the program is successful, it could lead to a significant reduction in electricity consumption and provide some relief to the country’s power grid.
In the long run, cracking down on illegal crypto miners could also have positive effects on Iran’s economy.. By freeing up electricity that is currently being used illegally, the country could improve its industrial output and ensure that more resources are available for legitimate uses.
Conclusion
Iran’s power crisis has reached a point where the government is turning to its citizens for help, offering financial rewards for reporting illegal crypto miners. As the situation continues to develop, this approach may serve as an example for other countries facing similar challenges. For the latest updates on this story and other news in the world of cryptocurrency, be sure to check out The BIT Journal.
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