Boxes of machinery used in Bitcoin “mining” operations that were confiscated by police in Nazarabad, undated. (AP)

July 28, 2021

An official of the Islamic Republic of Iran Customs Administration has said that computers for mining cryptocurrencies enter the country with the knowledge of the government and with foreign currency provided by the Central Bank of Iran (CBI).

The government has often blamed high power-usage by cryptocurrency miners for shortages of electricity that have plagued Iran this year, especially during peak winter and summer months.

Mehrdad Jamal Arvanagi, technical deputy of customs told local media that mining machines are imported through official channels and in the past one year the central bank has provided $11 million dollars to importers of these computers.

The imports are conducted “by the private sector” with permits from the ministry of industry and mining and there is no restriction for bringing them through customs.

On Tuesday, Iran’s electricity management company sent a letter to judicial officials warning that with recent restrictions by the Chinese government on cryptocurrency mining, a large number of machines might be transferred to Iran, where electricity is subsidized.

Already, there have been reports and complaints in Iranian media and social media about Chinese mining farms set up in Iran allegedly in cooperation with the Islamic Revolutionary Guard to generate revenue for operators and hard currency for the military-intelligence force listed as a terrorist organization by the United States.

Iran International

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Track PersiaTrack Persia is a Platform run by dedicated analysts who spend much of their time researching the Middle East, in due process we fall upon many indications of growing expansionary ambitions on the part of Iran in the MENA region and the wider Islamic world. These ambitions commonly increase tensions and undermine stability.