Iran hopes to impose harsher legislation to combat illegal crypto mining. The Iranian government intends to move forward with new legislation aimed at increasing fines for illegal cryptocurrency mining. The majority of governments throughout the world are attempting to establish cryptocurrency rules and regulations.
In the case of repeat infractions, Iran’s new rule will involve incarceration and the revocation of company licences.
Iran to prohibit misuse of electricity
According to a study, the new heavy penalties would boost fines by at least three to five times. According to a government official, mining digital assets with subsidised power accessible to homes, businesses, and farmers will be prohibited. The abuse of subsidised electric power has increased across the country.
The Iranian government approved cryptocurrency mining for industrial purposes only in 2019. Mining exploded across the country as a result of this decision. Ministers warned defaulters in May 2021 that they would face huge fines if they continued to misuse electricity.
According to the report, the regulation isn’t just about penalties; violators will also have to pay for the damage to the power network and system.
Energy use in the mining industry is a contentious issue
Countries such as China have sent a strong message to the rest of the globe by imposing a nationwide ban on crypto mining, citing worries about the act’s excessive energy consumption. Kazakhstan had also imposed restrictions on space owing to the country’s serious energy constraints.
The European Union has recently voted to prohibit mining-intensive cryptocurrencies because of their possible environmental effect. However, the suggestion was turned down.
