Iranian authorities have increased the penalties for illegally mining cryptocurrencies using subsidized electricity and introduced prison sentences for repeat offenders. The Tehran Times writes about this, citing a representative of the Department of Energy.

“The use of any subsidized electricity for household, industrial, agricultural and commercial subscribers is prohibited for cryptocurrency mining,” a ministry spokesperson said.

According to the authorities, the activities of the miners create problems in the electricity supply, contribute to the disruption of the electricity grid and can cause damage to the devices of ordinary users.

The new rules also suggest that violators could have their licenses revoked for activities related to the issuance of digital currencies. In addition, such organizations will be liable to compensate for the damage they cause to the electricity grid.

Iran periodically imposes restrictions on cryptocurrency mining. In May 2021, President Hassan Rouhani announced a temporary ban on cryptocurrency mining due to electricity shortages. Licensed businesses were allowed to resume business in the fall.

In December of the same year, the state energy conglomerate Tazeir demanded that authorized miners stop their work.

Recall that elliptical analysts said that the cryptocurrency allows Iran to bypass sanctions and buy imported goods.