Around 1000 bitcoin mining machines have been seized by the Iranian government due to power issues. These machines were used by two crypto mining firms in some abandoned factory premises in the Yazd province.

The Energy Ministry of Iran says that due to the heavy consumption of electricity in mining, the power grids are becoming unstable. Hence it is affecting the electricity usage of normal consumers. There has been a spike of 7% in electricity use which is due to the use of high-end systems to mine crypto.

As per the Ministry, there is an on-going discussion about setting up pricing for those who are running crypto mining and consuming a high amount of electricity. The power required to mine 1 bitcoin equals to the amount required to light 24 households for a year. Authorities mention that the government will keep cracking down on illegal mining operations throughout the nation.

Usually, electricity is cheap in Iran. This makes Iran a safe haven for the local and foreign miners. Even Chinese crypto miners are setting up their machines in Iran due to the low cost of electricity. Government reports also cite that crypto mines have been set-up in schools and mosque where electricity is free.

As per the US sanctions, bank transfers in Iran goes through severe restriction. So, people are choosing the path of cryptocurrency to avoid the sanctions. Bitcoin is one of the notable cryptos and for its high value, it’s the first choice of miners.