95% of Iran’s Crypto Rigs Run Illegally, Officials Warn

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 03, 2025

Key Takeaways

Roughly 95% of Iran’s 427,000 crypto mining machines are operating without proper licenses, according to national authorities;
Low electricity costs have made Iran a major crypto mining hub, but unapproved operations are straining the national power grid;
Officials are shutting down illegal mining sites, with over 1,400 machines seized recently in Tehran Province alone.

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Iran is dealing with a large number of cryptocurrency mining machines running without official permission.

An estimated 95% of the 427,000 active mining units in the country are not licensed, according to officials.

Akbar Hasan Beklou, who leads Tehran’s electricity distribution company, explained that cheap energy prices in Iran have encouraged many to set up illegal mining operations. This has made the country one of the major global centers for crypto mining.

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These unapproved setups are using more than 1,400 megawatts of power nonstop. This heavy usage puts added strain on the national power system, which can affect electricity availability for regular users.

To avoid detection, many of these miners operate under the cover of industrial or commercial buildings. They tap into electricity meant for factories, taking advantage of lower rates intended for production facilities.

Authorities have increased their efforts to identify and shut down illegal miners. In Tehran Province, officials have closed 104 unauthorized mining sites and seized 1,465 mining devices.

Certain areas have become known for such activity, including Pakdasht, Malard, Shahre Qods, and parts of southwestern Tehran where industries are concentrated.

Special inspection teams are currently working with police to track down and remove illegal operations.

New York State Senator Liz Krueger recently proposed a bill to tax electricity used by cryptocurrency mining companies. What does the bill include? Read the full story.