Iran’s crypto mining industry has come into focus after an official disclosure revealed an immense scale of illicit activity. Akbar Hasan Beklou, CEO of Tehran Province Electricity Distribution Company estimated over 427,000 active crypto mining devices are operating throughout Iran – with 95 % unlicensed and illegal devices currently in use across the nation according to TradingView (with Edgen as source) Edgen as source and an official disclosure revealed such illicit activity by over 427,000 active devices currently active nationwide (tradingView for details, Edgen for details). TradingView Edgen 1718 Edgen 1826
Unauthorized operations span across an unprecedented scale of illegal operations worldwide, and could reach billions.
Iran now houses over 427,000 mining rigs, making it one of the world’s biggest cryptocurrency mining hubs; however, most operate outside legal constraints. According to Beklou, many machines masked as industrial installations to gain access to heavily subsidised electricity — turning Iran into what Beklou called a “paradise for illegal miners.” Phemex recently provided evidence supporting these claims.
These illicit operations reportedly consume over 1,400 megawatts of power daily – placing a strain on Iran’s electricity grid and endangering supply stability for residential and industrial users. TradingView
Why has there been an upsurge in illegal mining activity?
Subsidised electricity: Iran’s low power rates make mining much cheaper than in many other countries, providing economic incentive for both legitimate and shadow miners alike. WEEX reports this fact as being attractive.
+1rov Weak regulatory enforcement: While crypto mining is technically legal under licensing agreements, registration, monitoring and power usage controls appear inadequately enforced – leading to clandestine rigs being created despite legal provisions for registration, monitoring and power usage controls.
Power Grid Vulnerabilities: Mining companies that use deceptive tactics such as disguising mining as industrial use or diverting subsidised electricity supplies allow large numbers of rigs to operate undetected, placing further burdens on the grid. We need an antidote for such issues now. – Edgen
Iranian authorities are intensifying their crackdown efforts in response. Official figures reveal 104 illegal mining farms have been shut down and 1,465 mining machines seized, the equivalent of which could power over 10,000 typical households in Tehran province alone. And markets continue to thrive
Tavanir has announced a bounty programme as an additional deterrent against illegal mining rigs: citizens reporting these machines can claim rewards (for instance 1 million toman per machine reported, equivalent to US $24) from state-owned utility Tavanir. With wider implications.
Iran’s rampant crypto mining activity has had several profound repercussions.
Strain on infrastructure: Large unlicensed rigs divert large amounts of subsidized energy away from homes, businesses and public services, potentially endangering electricity reliability for residents, businesses and public services.
Undermining Legal Framework: High levels of illegality discourage formal actors and complicate tax or regulatory collection efforts, weakening overall trust and effective governance within an industry.
Global Crypto-Mining Dynamics: Iran’s rise (despite sanctions and isolation) demonstrates how energy subsidies and regulatory gaps can drive mining hubs — but also how fragile those hubs may be in case enforcement tightens up. Reports estimate Iran contributes roughly 4.2% of global Bitcoin hashrate. Edgenachtig Edgen+1
Iran faces the task of controlling illegal mining rigs; that requires tighter licensing, monitoring electricity use more closely, and creating clear pathways for legitimate mining operations. Without such reform, illegal mining operations could increase further, further straining grid capacity and increasing regulatory risks.
Iran serves as an instructive tale for the global crypto sector: mining growth may depend less on technological innovation than it does on energy economics and regulatory oversight. Countries offering cheap power may entice miners, but this may bring with it increased illegality and infrastructure vulnerability.
Iran currently hosts over 427,000 active crypto mining devices, of which an estimated 95% operate illegally, creating both an economic opportunity and regulatory challenge for itself. With its power grid experiencing significant strain as a result of such unlicensed activity, authorities have responded by taking measures to transform this unsustainable industry into one with licensed operations that is both sustainable and licensed – this process will be watched not just locally, but by a worldwide community of miners, policymakers and energy regulators alike.
