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Iran court orders the release of seized crypto mining equipment

January 4, 2023No Comments

iranian authorities seized numerous crypto mining equipment in the last two years, citing stress on power grids during winter. Now, a court has ordered the release of previously seized crypto mining equipment as a measure to conserve energy.

Since 2021, Iran's Organization for the Collection and Sale of State Property (OCSSOP) has seized mining equipment, both authorized and unauthorized. due to concerns about looming power shortages. However, the authorities changed their minds in the middle of winter when they ordered the release of the seizure. What explained By Abdolmajid Eshtehadi, head of Iran's Ministry of Economic Affairs and Finance:

โ€œCurrently, the OCSSOP has in its possession some 150,000 cryptomining equipment, a large part of which will be released after court rulings. The machines have already been returned.โ€

However, Eshtehadi believed that the recently launched mining equipment could add stress to the country's power grids. He suggested that the Transmission and Generation Company of Iran (TAVANIR) should propose plans for the use of the hardware to avoid undue strain on the nation's grid system.

Bitcoin hash rate contribution by country. Source: Cambridge Center for Alternative Finance

In June 2022, Iran had to cut off power to legal mining companies as the country's electricity consumption hit an all-time high of 62,500 megawatts (MW) during peak consumption. At the time, Iran used to account for 0.12% of global Bitcoin (BTC) hash rate, which now has raised to 0.2%, as shown in the graph above.

Iran's energy concerns become apparent when considering recent laws imposing fine for illegal use of subsidized energy in cryptomining.

Related: Iran Import Association Demands Regulatory Clarity For Using Crypto In Foreign Trade

On the other hand, Denver-based Crusoe Energy aims to help Oman, a gas-rich Middle Eastern country, reduce gas flaring โ€“ the flaring of natural gas associated with oil drilling.

Crusoe Energy announced plans to open a pilot project in Muscat, Oman, to reuse energy from gas flaring to power mining computers. This initiative will help Oman's goal of flaring zero gas by 2030.