Iran Tackles Unauthorised Crypto Mining After 95 Percent of Bitcoin Mining Devices Found Operating Illegally

Iran's crypto mining industry is facing a major enforcement drive after officials revealed that nearly 95 percent of the country's 427,000 active Bitcoin mining devices are running without government approval. According to Akbar Hasan Beklou, CEO of the Tehran Province Electricity Distribution Company, Iran has become one of the biggest and least regulated Bitcoin mining hubs in the world due to heavily subsidised electricity. These unauthorised farms consume more than 1,400MW of power daily, putting immense strain on the national grid and disrupting supply during peak usage periods.

Authorities Target Illegal Bitcoin Mining to Protect Iran's Power Grid

Authorities have stepped up efforts to dismantle these operations, shutting down 104 illegal mining farms in Tehran Province alone and seizing 1,465 machines, which use enough energy to power nearly 10,000 households. Inspections have uncovered mining farms hidden in underground tunnels, abandoned warehouses, and industrial facilities across Pakdasht, Malard, Shahre Qods, and southwestern Tehran. Officials believe that due to inadequate oversight, many more sites are still operating discreetly throughout the rural areas. 

“Iran has become a paradise for illegal miners,” Beklou said, noting that many operators disguise their activities as legitimate industrial facilities to access cheaper electricity. He further added that such unlicensed activity makes it more difficult for the government to effectively regulate the industry and presents a growing threat to the stability of the energy supply nationwide. 

To curb the problem, the government has launched a public reporting initiative that rewards citizens who identify unauthorised mining devices. As per an Iran-focused news outlet, Iran International Informants will receive IRR 10 million (roughly Rs. 2,130) for each illegal unit reported. The program, which was unveiled in August, intends to reduce energy consumption, increase grid stability, and shield the nation's infrastructure from additional stress.

Despite the ongoing crackdown, Iran remains a significant player in global Bitcoin mining, ranking fifth with a 4.2 percent share of the world's total hashrate according to a June report by CoinLaw. The United States leads with 44 percent, followed by Kazakhstan, Russia, and Canada. Illegal mining may continue to interfere with Iran's electrical grid and impede the expansion of legal businesses in the absence of stronger regulation, appropriate licensing, and enforcement of energy tariffs.