Iran crypto mining: Why it's banned, how it persists, and what it means for miners

When you think of Iran crypto mining, the practice of using computer hardware to validate blockchain transactions in Iran, often under legal restrictions. Also known as underground crypto mining, it's one of the most surprising stories in crypto — a country that banned Bitcoin mining still produces more hash power than most nations. Iran’s government officially outlawed crypto mining in 2022, citing energy shortages and financial instability. But here’s the twist: mining didn’t stop. It just went dark.

Why? Because Iran has cheap electricity — subsidized by the state — and a population desperate for ways to protect savings from hyperinflation. Miners rigged up warehouses with thousands of ASICs, powered by state-subsidized power grids, and quietly sold their coins on peer-to-peer platforms. Some even used VPNs to hide their operations from regulators. This isn’t just about profit. For many, it’s survival. The Iran crypto ban, the government’s 2022 policy prohibiting unlicensed cryptocurrency mining and trading. Also known as crypto mining prohibition, it targeted individuals and businesses, but failed to stop the flow of hash power. Meanwhile, the underground crypto mining, the covert operation of cryptocurrency mining hardware outside legal frameworks, often using stolen or subsidized power. Also known as black market mining, it thrives in countries with strict controls and high inflation. network grew stronger. Reports from 2023 showed Iran still ranked in the top 10 global mining hubs, despite the ban.

What’s next? The government keeps cracking down — shutting down farms, cutting power to suspected sites, and arresting operators. But new rigs keep appearing. Why? Because the math still adds up: cheap power + high Bitcoin price = profit, even if you’re breaking the law. And with no legal way to cash out through banks, miners rely on P2P platforms, crypto ATMs, and trusted middlemen to turn hash power into cash. This isn’t a glitch in the system. It’s a workaround built by necessity.

Below, you’ll find real stories and data from people who’ve lived through this. From how they hide their rigs, to the exact power costs they pay, to what happened when the government raided their warehouse. These aren’t theories. These are facts from the front lines of Iran’s hidden crypto economy.