Government crackdown on Bitcoin mining: hundreds of clandestine operations exploiting subsidized energy have been shut down.
According to WANA News, Iranian authorities have intensified their fight against illegal Bitcoin mining, revealing that over 95% of mining operations in the country operate outside the law, taking advantage of the extremely cheap electricity provided by the state.
Akbar Hasan Beklou, CEO of the Tehran Province Electricity Distribution Company (TREC), stated that Iran has quietly become the world’s fourth-largest hub for Bitcoin mining. The main reason lies in the country’s extremely low energy costs, which have turned it into a “paradise for illegal miners.”
Citing official statistics, Beklou stated that approximately 427,000 active mining devices operate nationwide, consuming more than 1,400 megawatts of electricity continuously from the national grid, putting pressure on the country’s energy infrastructure and jeopardizing electricity supply for the population. According to the TREC CEO, many of these facilities disguise themselves as factories or small workshops to gain access to subsidized industrial energy rates.
To tackle the issue, the government has launched nationwide raids against unlicensed mining farms. In Tehran Province alone, law enforcement dismantled 104 illegal facilities, seizing 1,465 mining machines, said Beklou.
According to the TREC CEO, investigations have uncovered equipment hidden in basements, underground tunnels, and even integrated within industrial production lines – all illegally connected to subsidized power networks.
The Iranian Ministry of Energy has introduced a reward system to encourage citizens to report illegal mining activity. Anyone who reports unauthorized mining devices can receive up to one million tomans (around $24). The initiative aims to protect the national power grid and recover lost revenues from unlicensed operations.
Despite the ongoing crackdown, Bitcoin mining in Iran remains significant on the global stage. According to CoinLaw data, the country ranks fifth worldwide, accounting for roughly 4.2% of Bitcoin’s total network hashrate. The United States remains the undisputed leader, followed by Kazakhstan, Russia, and Canada.
