Key message: Iran is waging a war against illegal mining. The latest development, which is in line with Iran’s crackdown on illegal mining, is the seizure of some 7,000 mining rigs by the authorities. These rigs were found in an abandoned factory in Tehran, the capital.
Iran and mining ban
The well-known news from China, where cryptocurrency miners are gradually moving to more favorable locations, is complemented by news from Iran, where cryptocurrency mining is illegal. Authorities there have halted mining until at least September. This country has become a miners’ paradise because of its cheap electricity. A study by Elliptic showed that Iran accounts for more than 4% of BTC production. According to authorities, mining has affected the country’s electricity supply.
This is not the first crackdown where mining equipment has been seized. But this is the largest one yet. Already in January, more than 1,500 unlicensed mining farms were seized. In the same month, authorities seized 45,000 mining devices.
These crackdowns, in both of countries, are being felt across the crypto world. The crackdown on Chinese miners has led to a sharp drop in hashrate of nearly 50%. There is a saying among miners that ‘price follows hashrate’. The crypto community is thus worried about bigger price drops.