Iran Battles Power Crisis from Illegal Crypto Mining

Power Grid Under Pressure

Iran is facing a growing energy crisis, and the culprit isn’t just the summer heat — it’s crypto mining. According to local authorities, 95% of all crypto mining operations in Iran are illegal, and they’re placing a massive burden on the country’s already fragile power grid.

While crypto mining has been legal in Iran since 2019 under government-issued licenses, most miners have chosen to operate in the shadows to avoid regulation, high electricity tariffs, and surveillance. The result? Widespread energy theft and infrastructure strain, especially during peak usage periods.

Illegal Miners Exploit Subsidized Power

Iran offers some of the cheapest electricity in the world due to government subsidies — a factor that has made it a hotspot for crypto miners. However, licensed mining is heavily monitored, and energy rates for legal operations are much higher than household or industrial rates.

This has led many miners to operate illegally, often hiding rigs in homes, factories, or abandoned buildings. These miners tap into the subsidized grid, draining power without paying fair costs. In some regions, blackouts and electricity rationing have been blamed directly on these unauthorized operations.

The Ministry of Energy and Iran’s power companies have launched thousands of inspections, and hundreds of illegal farms have been shut down. Still, enforcement remains a challenge due to the decentralized and mobile nature of mining setups.

A Balancing Act for Iran

Crypto mining provides Iran with a way to generate income and access foreign currency despite international sanctions. However, the economic benefits are being overshadowed by the damage to national infrastructure and growing public frustration over power outages.

As the country moves toward winter, when demand for energy rises, the government is expected to step up its crackdown on illegal mining operations. There are also calls for more transparent policies that would allow Iran to benefit from crypto without compromising its energy grid.