95% of Iran’s 427,000 active crypto mining devices operate illegally, official says
Summary
Iran's energy chief reveals that 95% of the nation's 427,000 crypto mining rigs operate illegally, significantly straining the power supply and threatening the stability of the national grid. This highlights ongoing challenges in regulating the cryptocurrency sector.
Key Insights
Is cryptocurrency mining legal in Iran, and what regulations apply?
Cryptocurrency mining is legal in Iran but strictly regulated. Miners must obtain licenses from the Ministry of Industry, Mine and Trade, comply with electricity tariffs set specifically for mining, and use approved hardware. These regulations aim to control energy consumption and integrate mining into the national economy. Despite this, about 95% of mining devices operate illegally, often by stealing electricity or bypassing licensing requirements.
Why does illegal crypto mining in Iran cause power supply problems?
Illegal crypto mining in Iran consumes large amounts of electricity—over 1,400 megawatts nationwide—often through unauthorized connections and power theft. This excessive and unregulated energy use strains the national grid, leading to instability and rolling blackouts that affect residential and industrial consumers. Illegal miners sometimes conceal their operations underground or tap into subsidized industrial power lines, complicating detection and enforcement.