The executive initially denied links to the mining operation, then claimed it was for research purposes before admitting to his illicit actions and stepping down.
Government officials had identified block reward mining as one of the biggest energy guzzlers, expressing particular concern over the illegal miners which the government is still struggling to bring down.
The Iranian National Tax Administration put forward proposals for a new legal regime for digital currency trading, following a recent announcement by President Hassan Rouhani that measures would be introduced.
The instruction came from first vice president of Iran Eshaq Jahangiri, who said all of the country’s licensed mining companies should halt production.
The new licenses are required for businesses hoping to mine digital currency in the country, a legal requirement in Iran since laws were introduced in July 2019.
Police in the capital Tehran have seized the 7,000 block reward mining machines from an “an abandoned factory in the west of the capital,” according to reports.
President Hassan Rouhani said the country required a legal framework for digital currency and related activities that would protect the national interest, while ensuring block reward mining remains outlawed.
Officials in the Iranian government have been quick to identify block reward mining as a source of the supply problems, citing the 85%+ of unlicensed mining activity thought to be going on across the country.
The Iranian government has reportedly enlisted the services of its network of intelligence officers to dig out the miners as the national power supply firm doubles the reward for whistleblowers.
People in Iran who turn to mining digital currency via their domestic electricity supply will now face heavy fines, according to the government.
In its latest announcement, the Central Bank of Iran revealed a new regulatory framework that allows forex companies and banks to pay for such import as electronics and raw materials.