The Iranian Government Returns Crypto Mining Machines To Miners

The Iranian government returns the confiscated mining rig. (Photo; Doc. Cryptopolitan)

JAKARTA Iranian authorities are reportedly returning confiscated crypto mining rigs to the miners. The rig was confiscated by the Iranian Organization for the Collection and Sales of State Property (OCSSOP) in raids on a number of illegal mining sites.

According to the Financial Tribune report, the Iranian court has ordered the organization to return crypto asset mining equipment to its owners.

Currently, about 150,000 [units] of crypto mining equipment are held by OCSSOP, most of which will be released after the court's decision. The machines have been returned, said OCSSOP chairman Abdolmajid Eshtehadi.

The official further outlined that Iran's Power Plant, Transmission and Distribution Company (Tavanir) should submit a proposal on how to utilize mining hardware without causing damage to the national network.

Iran legalized cryptocurrency mining in July 2019, but has since stopped official coin printing operations on several occasions, following reduced power supplies during the summer and winter months when electricity consumption soared. Iran has also cracked down on its citizens who mine crypto without complying with local rules.

Launching Bitcoin.com News, companies wishing to mine legally are required to obtain licenses and import permits from the Ministry of Industry, Mining, and Trade. Devices must be approved by the Iranian Standard Organization and miners are required to pay electricity at an export rate.

Crypto printing using natural or electrical gas intended for consumers and other purposes is illegal in Iran. But underground mining installations powered by cheaper and subsidized energy have increased in number, avoiding licensing that would force them to pay significantly higher rates.

In recent years, state-run Tavanir has cut electricity supply to every identified illegal mining facility, confiscated their equipment and fined their operators for damage to the national distribution network.

Since 2020, the utility has found and closed 7,200 illegal crypto mining fields. In July 2022, they took firm action against unlicensed crypto miners who, according to previous estimates, had burned 3.84 trillion reals (about 16.5 million US dollars) for subsidized electricity.

The release of the mining rig was carried out despite a ban by the Attorney General's Office on the move until Iranian parliament adopted a law dealing with illegal mining issues. In August, the government in Tehran approved comprehensive crypto rules and in September began allowing mining companies under the new crypto rules.