Iranian Bitcoiners Risk Fines, Jail Time as Government Regulates Mining

The Iranian government has been cracking down on cryptocurrency mining operations over the past three months, pending new legislation for formal mining licenses.

Since authorities have not officially approved a mining license process, several sources told CoinDesk that bitcoin miners are now operating in a climate of perpetual fear.

Another professional bitcoin miner estimated the government has confiscated 80,000 mining devices over the past four months.

An anonymous bitcoin developer in Tehran, who often works with miners, told CoinDesk many bitcoiners surrender the deeds to their homes to get out of jail, because the fines themselves can be worth more than their annual salaries.

In Iran, the state-controlled electricity prices vary according to use-cases and the category for bitcoin mining has yet to be formally established.

"If you were caught by the police having mining equipment in your car, your equipment would be seized and you would be charged with a penalty for handling or moving illegally imported machines," the third miner said.

Local news outlet Fars News reported in July that several unnamed individuals were arrested in the southwestern city of Saveh for transporting smuggled mining equipment.

Given this context, the growth of Iran's bitcoin mining sector is screeching to a halt, with some bitcoiners taking small operations deeper into the proverbial underground and others halting completely.

Just like the second miner, the third mining farm operator's machines are now sealed under government control, as he too has a pending court case.

"All we want, as people living in Iran, is for our government to understand the importance of this opportunity," the third miner said, speaking to the hope that Iran will become a hub for bitcoin mining operations.