Mining Crypto in Iran: Law and Restrictions in 2025
Iran Crypto Mining Profit Calculator
Key Facts for Iran Miners
Regulatory Risk High - License required
Power Risk Critical - Quotas and blackouts common
Cost Risk High - Premium electricity rates for miners
IRGC Advantage State-owned farms get free power
Miner Configuration
Important Notes
Based on data from Iran's Central Bank of Iran (2025 regulations):
- Legal miners pay 3x the standard industrial rate ($0.03/kWh vs. $0.004)
- Power cuts occur 35% more frequently during summer
- IRGC-controlled farms get free electricity
- Regulations change every 3-6 months
- Unauthorized mining results in seizure of equipment
Iran is one of the few countries in the world where cryptocurrency mining is legal-but only if you play by rules that change every few months. What sounds like a green light for profit is actually a minefield of sudden bans, power cuts, and political favoritism. If you're thinking about mining crypto in Iran, you need to understand not just the laws, but the chaos behind them.
Legal, but Under Heavy Control
As of 2025, crypto mining in Iran isn’t banned. It’s licensed. The Central Bank of Iran (CBI) now holds exclusive power to approve every miner, whether you’re an individual with a few rigs or a company running a warehouse full of ASICs. You can’t just plug in a miner and start hashing. You need a permit from the CBI, and you must use only government-approved hardware. Transactions must go through designated rial accounts. No anonymous wallets. No offshore transfers. Every hash is tracked. This system was formalized in January 2025 after months of blackouts and public outrage. Before that, mining was a gray zone-technically illegal, but widely ignored. Now, the government wants to control it. Not to protect users. Not to build a blockchain future. To control energy use.Electricity: The Real Gatekeeper
Iran has the cheapest electricity in the world for industrial users-around $0.004 per kWh. That’s why, in 2021, Iran was responsible for nearly 5% of global Bitcoin mining. But cheap power comes with a catch: the grid is old, fragile, and overstretched. In summer 2024, nationwide blackouts hit hard. The government blamed crypto miners. They said illegal operations were siphoning off 2,000 megawatts-enough to power a small country. The result? A four-month mining ban. All rigs shut down. Miners lost millions. When mining returned, it came with strict limits. The state-owned power company, Tavanir, now assigns mining operations a fixed electricity quota. Exceed it, and your power gets cut. And the tariffs for miners? They’re the highest of any industrial user. That’s the twist: you get cheap power, but you pay more for it than factories do.The Two-Tier System: Legal Miners vs. State Miners
Here’s the harsh reality: the rules don’t apply equally. While private miners scramble to get licenses and stay under their power limits, state-linked entities operate with no oversight. The Islamic Revolutionary Guard Corps (IRGC) runs at least one 175-megawatt Bitcoin farm in Rafsanjan, Kerman. It’s a joint venture with Chinese investors. It doesn’t pay electricity bills. It doesn’t need a license. It just draws power from state subsidies meant for mosques, hospitals, and schools. NCR-Iran’s investigation found that IRGC-affiliated operations control about 65% of Iran’s total mining capacity. That means the legal mining industry-where you need paperwork, audits, and compliance-is fighting for scraps. Foreign investors are invited to join… but they’re being set up to fail. Why? Because the government wants the revenue without the risk. Private miners get the regulations. The regime gets the power.
What You Need to Get Licensed
To mine legally in Iran today, you need to jump through three hoops:- Apply to the Ministry of Industry, Mine and Trade for a mining license. You must prove your hardware is on their approved list. No used rigs from China unless they’re on the registry.
- Register with the Central Bank of Iran. You need a dedicated rial account. All income from mining must be converted to rials and deposited here. No crypto-to-crypto trades allowed.
- Sign a contract with Tavanir. You’ll be given a monthly electricity allowance. If you go over, your power is cut. No appeals.
The Advertising Ban and Payment Freeze
In February 2025, Iran banned all cryptocurrency advertising-online, on billboards, even on social media. No more YouTube tutorials. No more Instagram ads for local exchanges. The government says it’s to protect citizens from fraud. The real reason? To make crypto invisible. To reduce demand. And in December 2024, the CBI froze all crypto-to-rial conversions on domestic exchanges. For 23 days, one million Iranians couldn’t buy Bitcoin to pay for groceries, medicine, or rent. People took to forums like Nama Blockchain to say they were starving. The ban was lifted in January 2025-but only after the government installed its own API to monitor every single transaction. Now, when you trade crypto for rials, the CBI sees your ID, your balance, your IP address, and your device fingerprint. Trustpilot ratings for Iranian crypto platforms dropped from 4.1 to 2.4 stars in under two months. Users aren’t angry about fees. They’re angry about being cut off from their own money.
Why the Market Is Shrinking
Iran’s crypto market peaked in late 2020, when Iranians traded $16-20 million daily across 12 different coins. Now, inflows are down 11% year-over-year, according to TRM Labs. Why?- Regulatory whiplash scares off investors.
- The advertising ban kills new user growth.
- Payment freezes destroy trust.
- State mining steals the best power.
- The government is pushing its own digital currency-the “Rial Currency”-a centralized, non-minable digital rial that can’t be traded or decentralized.
Is It Worth It?
For a foreign investor? Probably not. The legal path is expensive, slow, and risky. One power outage can wipe out your profit margin. The state can shut you down with a tweet. Your hardware might be seized. Your funds frozen. And if you’re caught working with IRGC-linked miners? You could be accused of violating sanctions. For an Iranian citizen? It’s a gamble. Some still mine as a side hustle. But they do it quietly. They use solar panels. They rent space in rural villages where enforcement is weak. They avoid the system entirely. The government doesn’t want to stop mining-it wants to own it.The Future: State Control or Collapse?
Iran’s crypto mining policy is a contradiction. The country needs hard currency. But it can’t afford the electricity. So it tries to control the flow-by punishing the small, protecting the powerful, and pushing a state-controlled digital currency. Analysts from AGSI say crypto won’t help Iran bypass U.S. sanctions. They’re right. The U.S. has cracked down on Iranian crypto exchanges. Banks won’t touch them. The only people profiting are those already connected to the regime. If summer 2025 brings another heatwave and another blackout, expect another ban. Another 100,000 rigs turned off. Another wave of protests. Another round of promises from the government. The truth? Crypto mining in Iran isn’t about technology. It’s about power. And the only ones who truly control it aren’t miners. They’re in Tehran.Is crypto mining legal in Iran in 2025?
Yes, but only with a license from the Central Bank of Iran. All mining operations must use government-approved hardware, pay regulated electricity rates, and report all transactions in rials. Unauthorized mining is illegal and can lead to fines or arrest.
Can foreigners mine crypto in Iran?
Technically yes-the government invites foreign investment. But in practice, it’s extremely risky. Foreigners face unpredictable power cuts, sudden policy changes, and potential asset seizures. Most legal mining licenses go to Iranian citizens or IRGC-linked entities. International investors are often used as fronts for state-backed operations.
Why does Iran keep banning crypto mining?
Iran’s power grid is unstable and under heavy strain. During summer heatwaves, electricity demand spikes. The government blames crypto miners for blackouts-even though experts say aging infrastructure and mismanagement are the real causes. Mining bans are temporary fixes to avoid public anger. The state doesn’t want to eliminate mining-it wants to control it.
Are there still underground mining operations in Iran?
Yes. Many miners operate in rural areas, mosques, and private homes where enforcement is weak. Others use solar panels or backup generators to avoid grid detection. P2P crypto trading has grown sharply as people bypass official exchanges. The government knows these operations exist but lacks the resources to shut them all down.
What happens if I get caught mining without a license?
Your equipment will be confiscated. You may face fines up to 100 million Iranian rials (roughly $2,000 USD). In severe cases-especially if you’re linked to foreign entities or large-scale operations-you could be arrested. The government has prosecuted individuals for running even small home rigs without a permit.
Is Iran’s digital currency the same as Bitcoin?
No. Iran’s “Rial Currency” is a centralized digital rial issued and controlled by the Central Bank. It cannot be mined. Its supply is fixed by the government. It’s not decentralized, not anonymous, and not interchangeable with Bitcoin or other cryptocurrencies. The government plans to use it to replace cash and eventually phase out private crypto transactions.
Cydney Proctor
November 4, 2025 AT 06:56So let me get this straight: the Iranian government bans advertising for crypto, freezes exchanges, and then acts shocked when people turn to Telegram bots and cash meetups? This isn't regulation-it's performance art for a regime that wants the revenue without the responsibility. The fact that they’re calling their centralized digital rial a ‘currency’ is like calling a stapler a ‘car’ because it has wheels.
Kathy Ruff
November 5, 2025 AT 03:27It’s heartbreaking to see how desperation drives innovation. Iranians aren’t mining crypto because they believe in decentralization-they’re doing it because inflation has turned their savings into paper. The state’s crackdown isn’t about energy-it’s about control. When people can’t buy medicine with their own money, they find ways around it. That’s not rebellion. That’s survival.
Kevin Mann
November 5, 2025 AT 07:16OH MY GOD. I JUST READ THIS AND I’M CRYING. I MEAN, LIKE, ACTUALLY CRYING. So imagine this: you’re a guy in Shiraz with 30 ASICs in your garage, right? You’re running on solar panels you built from eBay junk, and your wife is like, ‘Honey, can we afford rice this week?’ And then BAM-suddenly the government cuts your power because some IRGC general in Tehran is hashing Bitcoin 24/7 on state-subsidized electricity. And you’re like… ‘I followed ALL THE RULES.’ Like, what even IS justice anymore?? This isn’t capitalism. This is a dystopian Netflix series written by someone who hates humanity. 😭
Veeramani maran
November 5, 2025 AT 23:30yo so i was in tehran last year and met this dude who mined crypto from his basement using a modified fridge as a cooling system. he said the real trick is to mine during load-shedding hours when the grid is down but the diesel genset kicks in. the iranian miners are legit engineers-no joke. they hack the power meters, use p2p via whatsapp, and even barter btc for flour. the gov can ban all they want but the underground network is more efficient than their own banking system. also, typo: ‘rigs’ not ‘rigs’ 😅
Grace Huegel
November 7, 2025 AT 11:25I just can’t believe people still think this is about technology. It’s not. It’s about power. And the fact that we’re even having this conversation-on a platform owned by a billionaire who probably mined his own crypto while laughing at the chaos-is just… so ironic. I feel nothing. Just a hollow, echoing void where my hope used to be.
Nitesh Bandgar
November 8, 2025 AT 01:11WOW. JUST. WOW. This is like watching a lion try to eat a cactus-except the cactus is the Iranian people, and the lion is the IRGC, and the desert is the entire global crypto ecosystem, and somehow… somehow it’s STILL ALIVE?!?!?!?! The fact that Iranians are still mining, trading, surviving, hacking, and bartering through this bureaucratic nightmare? That’s not resilience. That’s a miracle wrapped in a solar panel and duct-taped with Telegram. I’m not just impressed-I’m in awe. And also terrified. Because if they can do this under a theocracy? What could they do with freedom?!
Jessica Arnold
November 9, 2025 AT 12:00The Iranian crypto landscape is a perfect case study in what happens when a state attempts to weaponize decentralization. The state’s digital rial isn’t a currency-it’s a surveillance tool disguised as modernization. The irony is that the very technology meant to liberate individuals from centralized control is being repurposed to entrench it. This isn’t an anomaly-it’s the logical endpoint of authoritarian technocracy. The miners aren’t just hashing blocks; they’re hashing the boundaries of state sovereignty.
Rob Ashton
November 10, 2025 AT 16:58While the situation in Iran is deeply troubling, it’s important to recognize the agency of individuals who persist in the face of systemic adversity. The resilience demonstrated by Iranian miners-whether operating under solar panels or through peer-to-peer networks-is a testament to human ingenuity. We should approach this not with cynicism, but with a commitment to supporting ethical technological access globally, even in the most constrained environments.
Cierra Ivery
November 11, 2025 AT 05:00Wait-so the government lets the IRGC mine for free, but if you’re a regular citizen with a single rig, you get fined 100 million rials? That’s not a policy-it’s a joke written by a corrupt bureaucrat who thinks people are stupid. And the fact that you have to use government-approved hardware? Like, what, they’re gonna audit your ASICs? Are they checking the serial numbers? Do they have a list of ‘approved’ chips? This isn’t regulation-it’s performance theater for people who think bureaucracy is a religion.
Robin Hilton
November 11, 2025 AT 12:57Let’s be real: if the U.S. had a country that was this chaotic and unstable, we’d be bombing it. But because it’s Iran? We just sit here and write essays about how ‘interesting’ their energy policy is. Pathetic. The whole thing’s a mess, and the fact that we’re even debating whether this is ‘legal’ is a sign of how out-of-touch Western crypto discourse has become. This isn’t a frontier-it’s a trap. And the only winners are the ones who never had to play by the rules.
Chloe Walsh
November 11, 2025 AT 18:08So… the government wants to control crypto so it can control people… but people are still mining… so… does that mean… the people are winning? Or is this just another cycle where the powerful pretend to be in charge while everyone else just… keeps going? I don’t know anymore. I just know that when I see a kid in Tehran using Bitcoin to buy insulin… I feel like I’m watching the end of the world… and also the beginning of something beautiful. I’m confused. I’m tired. I’m still here. So are they.