Iran is launching a fresh crackdown on illegal cryptocurrency mining, with authorities reporting that over 95% of the country's 427,000 active mining devices are operating without licenses. This unlicensed activity consumes more than 1,400 megawatts of power continuously, severely straining the national grid and threatening electricity stability for residential and industrial users.
Akbar Hasan Beklou, CEO of the Tehran Province Electricity Distribution Company, highlighted that most illegal miners disguise their operations as industrial facilities to access heavily subsidized electricity. Since the government's anti-mining efforts began, 104 illegal farms have been shut down in Tehran Province alone, resulting in the seizure of 1,465 mining devices. The energy consumption from these activities is equivalent to powering 10,000 households, exacerbating issues like power theft and reduced grid reliability.
Beklou noted that miners use sophisticated methods to evade detection, including digging underground tunnels, burying devices, and tapping into subsidized industrial power lines. Hotspots for illegal mining include Pakdasht, Firuzkuh, Shahre Qods, Malard, Kahrizak, and industrial zones in southwestern Tehran. In the first half of this year, about 80 unauthorized farms with over 1,300 devices were uncovered, consuming power for 8,000 households.
To combat this, Iran has introduced cash rewards of up to $24 (1 million toman) for citizens who report illegal mining operations, as announced by Mostafa Rajabi Mashhadi, CEO of state-run utility Tavanir. According to a June report by CoinLaw, Iran ranks fifth globally in Bitcoin hashrate distribution, contributing 4.2% of the network's computing power. The United States leads with 44%, followed by Kazakhstan (12%), Russia (10.5%), and Canada (9%).
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