Officials in Iran have said that they have confiscated 9,404 crypto mining rigs in Tehran since the end of March.

Claiming Down on Miners

On August 22, Kambiz Nazerian, the head of Tehran Electricity Distribution Company, announced that inspectors had uncovered mining equipment in a number of neighborhoods across the Iranian capital.

Kambiz Nazerian was quoted by Iran International on Monday saying that mining rigs have been found all over the city.

That number is mostly attributable to a massive haul in June when Iranian police uncovered an illegal mining farm and seized 7,000 units, the largest seizure of unlawful machines in the country’s history.

In spite of the country’s abundance of oil, heatwaves have caused widespread power outages and water restrictions, sparking protests in a number of urban centers.

The administration has blamed cryptocurrency mining for much of the increased demand.

The Cambridge Bitcoin Electricity Consumption Index estimates that in March of last year, Iran accounted for as much as 7.5% of Bitcoin’s hashrate (the total computing power on the network). However, it is unclear from reports if all of the rigs seized were dedicated to Bitcoin mining. Since then, Iran’s hashrate has fallen to 0.2% as of January.

As reported by the media, Iran’s comparatively cheap electricity prices, thanks to heavy subsidies, have made the country an attractive location for bitcoin miners. It has been speculated that the U.S. sanctions preventing Iran from participating in the international financial system have also fueled the boom in cryptocurrency mining and usage.

Authorities Prefer Crypto For Imports

Iran appears to be including the digital sector in its global trade, despite its crackdown on miners. Alireza Managhebi, head of Iran’s Importers Group and Representatives of Foreign Companies (Import Association), believes there are benefits to adopting bitcoins for imports if the right framework is devised and implemented.