Iran’s cryptocurrency mining sector is grappling with a massive wave of unauthorized activity, with authorities estimating that more than 95% of the country’s 427,000 active mining rigs function without official permission.
Akbar Hasan Beklou, CEO of the Tehran Province Electricity Distribution Company, stated that Iran has emerged as the world’s fourth-largest crypto mining center. This position is largely attributed to the nation’s heavily subsidized electricity prices, which have inadvertently turned it into an attractive base for illegal mining operations.
According to Beklou, these unlicensed cryptocurrency farms consume over 1,400 megawatts of electricity continuously. This excessive power consumption is placing significant strain on Iran’s national grid and jeopardizing the stability of electricity supplies across the country.
Many illegal miners reportedly mask their mining rigs inside industrial facilities to benefit from lower electricity tariffs meant for commercial use, thereby evading regulatory oversight.
In response to the surge in unauthorized mining, Iranian authorities have heightened enforcement actions. In Tehran Province alone, officials have dismantled 104 illicit mining farms and confiscated 1,465 mining machines—an amount of hardware that consumes electricity comparable to nearly 10,000 households.
Government inspections have uncovered mining setups concealed in underground tunnels and factories, particularly concentrated in areas such as Pakdasht, Malard, Shahre Qods, and industrial zones in southwestern Tehran. Dedicated inspection teams are collaborating closely with law enforcement agencies to uncover and terminate these clandestine operations.
In addition to shutdowns, Iran has introduced incentive measures to bolster detection efforts. Since August, the government offers monetary rewards to citizens who report illegal cryptocurrency mining. Mostafa Rajabi Mashhadi, CEO of the state electricity provider Tavanir, announced informants would receive approximately 1 million toman (around $24) for each unauthorized mining rig they identify.
A June report by CoinLaw highlights Iran’s significant role in the global Bitcoin network, ranking fifth in terms of Bitcoin hashrate distribution. The country contributes roughly 4.2% of the total Bitcoin network’s computational power, following the United States (44%), Kazakhstan (12%), Russia (10.5%), and Canada (9%).
Iran’s ongoing crackdown reflects the government’s commitment to regulating its expanding but largely unlicensed crypto mining industry, addressing power consumption challenges, and safeguarding the nation’s electricity infrastructure.
