Iran Crypto Mining Crackdown: 95% Illegal Devices
Iran’s crypto mining industry is under intense scrutiny as authorities escalate efforts to address a surge in illegal operations. Officials estimate that more than 95% of the country’s 427,000 active crypto mining devices are functioning without government authorization. The Iran crypto mining crackdown comes as the nation emerges as the world’s fourth-largest hub for cryptocurrency mining, a role driven by its heavily subsidized electricity prices.
Background: Subsidized Electricity Fuels Illegal Mining
The CEO of Tehran Province Electricity Distribution Company, Akbar Hasan Beklou, stated on Sunday that “Iran has become a paradise for illegal miners” due to the country’s low-cost power, according to Cointelegraph. Unlicensed crypto mining operations in Iran are estimated to consume over 1,400 megawatts of electricity continuously, a figure that places significant strain on the national power grid. Illegal miners often disguise their activities as legitimate industrial facilities or use underground tunnels to exploit subsidized energy and avoid detection
Market Reaction and Enforcement Actions
The large-scale unauthorized consumption has prompted a robust government response. In Tehran Province alone, 104 clandestine crypto mining farms have been shut down and 1,465 mining machines seized in recent months—an amount comparable to the power usage of nearly 10,000 residential households. Authorities have identified specific hotspots, including Pakdasht, Malard, Shahre Qods, and southwestern Tehran’s industrial zones where illegal crypto mining is prevalent. Beklou emphasized that specialized inspection teams are working alongside law enforcement to locate and dismantle hidden operations.
To encourage public cooperation, Iran’s government introduced an incentive program in August, offering cash rewards for information about illegal crypto mining. Mostafa Rajabi Mashhadi, CEO of state-run utility Tavanir, announced that citizens who report an unauthorized mining device can receive 1 million toman (approximately $24) per device.
Global Ranking and What’s Next for Iran’s Crypto Mining
According to a June report by CoinLaw, Iran accounts for 4.2% of the global Bitcoin (BTC) hashrate distribution, ranking fifth in the world. The United States leads the market with 44%, trailed by Kazakhstan at 12%, Russia at 10.5%, and Canada at 9%. With the ongoing Iran crypto mining crackdown, authorities aim to relieve pressure on the national grid and ensure the stability of electricity supply across the country. Industry observers are watching closely to see how these measures might reshape Iran’s position in the global crypto mining landscape.
The crackdown’s long-term impact remains uncertain. However, continued public reporting incentives, increased inspections, and ongoing collaboration between utilities and law enforcement are expected to play key roles in reshaping Iran’s cryptocurrency mining sector.
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