Iran has banned the advertisement of crypto mining machines in a new diktat from the Pezehskian administration as the country continues to suffer from ongoing power shortages, ICTNA reported on December 1.

The Pezeshkian administration's crackdown worsens the ongoing concerns about the impact of unregulated cryptocurrency mining on Iran's electricity infrastructure, which has faced significant challenges due to illegal operations. Power cuts and brownouts have caused havoc across Iran into autumn and winter, where previously blackouts were only a summer occurrence. 

In a letter by the Ministry of Communications addressed to major online retailers, the ministry referenced a President Rouhani-era resolution dated April 14, 2016, by the Council of Ministers banning the advertisement of "high-consumption goods" without explicitly naming mining machines in the note.

The ministry also called for removing advertisements for training cryptocurrency mining devices and high-energy filament bulbs.

"Continuation of illegal activities in this area will be pursued through legal and judicial authorities," the letter stated.

Recipients of the letter include chief executives of prominent online marketplaces such as Digikala, Snapp, Divar, Torob, Sheypoor, Basalam, MiniKala, Pindo, Yektanet and Mediaad.

Tavanir, Iran's Power Generation, Transmission and Distribution Company, has urged courts to take legal and criminal action against cryptocurrency mining, citing the damage mining equipment inflicts on the country's electricity network.

Cryptocurrency mining has been recognised as an official industry in Iran since 2019. Miners are required to obtain licenses from the Ministry of Industry, Mining, and Trade.

Electricity costs for these operations are calculated based on export electricity rates, and mining activities are prohibited during peak consumption periods.

Legislators permit miners to generate their own electricity through generators or renewable energy sources to meet their consumption needs without incurring additional costs. This measure aims to reduce the burden on the national grid while allowing the industry to operate within legal frameworks.

News of the push to stop cryptominers comes amid large gains in bitcoin and other cryptocurrencies in recent weeks, with BTC rising above $97,000 on December 1.

Earlier in February, Hamid Pirpirian, Tavanir's deputy director, instructed regional offices to establish working groups to address the challenges posed by cryptomining, but little has been done so far.

Cryptocurrency mining became legal in Iran in 2019 after significant debate requiring miners to obtain a license from the Ministry of Industries and use efficient hardware approved by the Iran Standard Organisation.

The government provides authorised farms with power at export prices after miners caused blackouts across Tehran and other cities due to historically low energy prices.

The announcement of the new crackdown comes amid increasing reports from several cities across Iran that new crypto mines are being discovered regularly.

Qazvin Police force, a city west of Tehran, announced it had seized nine mining machines from a residential residence and bitcoins to the value of IRR3bn ($54,450) in one location, Young Journalists Club earlier this year reported. 

On January 22, at least 22 crypto miners were taken by police in Tabriz in the northwest of the country, following reports from the local power company that excessive use of electricity indicated a potential unregistered crypto mine happening in the country, East Azerbaijan's Broadcasting News Agency reported. 

According to the latest data, 265,433 mining hardware units have been seized from 9,261 illegal cryptomining farms over the past three years. In addition to losing their devices, miners must compensate for any damage to the national grid caused by their illegal activities.

Iran is no stranger to crypto developments, having been focused on using the anonymity of financial transfers to its advantage in the face of crushing international sanctions.

As part of this move to seize on the uses of crypto in January 2022, the Central Bank of Iran (CBI) said it planned to launch  CBDC and use crypto to settle international settlements. As part of that scheme, the CBI and the ministry have agreed to link the central bank’s platform with the ministry’s comprehensive trading system (CTS) to facilitate trading.