Bitcoin News and Finance Iran Is Using Bitcoin Mining to Circumvent Sanctions, According to Elliptic Skip to main content

Iran Is Using Bitcoin Mining to Circumvent Sanctions, According to Elliptic

Iran Is Using Bitcoin Mining to Circumvent Sanctions, According to Elliptic

Iran is using Bitcoin mining to circumvent and lessen the effect of the economic sanctions that the U.S. and other countries have applied to the country since 2006, according to a new study by Elliptic, a blockchain analytics and financial crime compliance firm. The country is indirectly using bitcoin mining to export part of its energy reserves, whose exports are being hampered by the said sanctions.

Report: Iran Is Using Bitcoin Mining to Circumvent Sanctions

Iran is leveraging bitcoin (BTC) as a tool to circumvent and lessen the impact of the harsh sanctions that the country is facing, according to a new study from Elliptic, a blockchain crime analysis firm. The investigation, which estimates Iran houses 4.5% of all the bitcoin hashrate in the world, states that the country is using bitcoin indirectly to export its energy reserves.

Iran is one of the few countries with abundant oil reserves in the world. However, its capacity to export and use these has been severely limited due to the almost total embargo on oil exports that the U.S. has exerted over the country during the last decade. This has made the government turn to bitcoin mining, as one potential tool for transforming its energy potential into a product the country can profit from.

Seemingly, it has worked. Iran’s aging electric structure has had problems handling the load that mining puts on it. The electric tariffs are pretty cheap, a fact that has fueled the cryptocurrency mining craze. Elliptic’s report state that Chinese mining companies have been attracted by this fact, and have even partnered with the military to bring their facilities to the country in a safe way.

But how exactly is Iran using Bitcoin to sidestep its limitations? As part of a globalized economy, Iran is effectively getting its energy reserves out to the world by using its oil to produce electricity that is turned into bitcoin through the action of miners in Iran. In this way, Iran is getting an indirect exposure of its oil reserves through potential bitcoin buyers and users.

The Transactional Risks

While Iran and Iran-based miners are benefiting from this, the report also raises important alerts about compliance, while using the Bitcoin (BTC) network to transact. Elliptic states that any institutions and individuals sending bitcoin could be breaking these international sanctions. The report states:

There is a… chance that any bitcoin transaction will involve the sender paying a transaction fee to a bitcoin miner in Iran. Financial institutions should also be on the lookout for crypto deposits originating from Iranian miners that are seeking to cash out their earnings.

There are a number of initiatives that are seeking to thwart this potential illegal activity down. Marathon, a bitcoin mining company based in North America, launched the first OFAC compliant bitcoin mining pool recently, which is now mining only compliant transactions. Other similar initiatives might come in the future due to the institutionalization of BTC as an asset class, that is now fueling institutions to shield themselves from carrying these illegal actions unknowingly.

What do you think about Elliptic’s last report? Tell us in the comments section below.

Comments

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Blogarama - Blog Directory