Mining Crypto in Iran: Law and Restrictions in 2026
Bitcoin mining in Iran isn’t banned-but it’s not exactly legal either. Since 2018, the government has walked a tightrope: letting miners operate while constantly tightening the screws. By 2026, the rules have turned into a maze of shifting deadlines, hidden exceptions, and power blackouts that leave ordinary miners stranded. If you’re thinking about mining crypto in Iran, you need to know what’s real, what’s fake, and who’s really in control.
It’s Legal… But Only If the Government Says So
As of 2026, cryptocurrency mining is technically legal in Iran-but only if you have a license from the Central Bank of Iran (CBI). That sounds straightforward, but the reality is messier. The CBI took full control of crypto regulation in January 2025, replacing a patchwork of local rules with one central system. Now, every miner-individual or company-must apply for a license, prove they’re using approved hardware, and agree to pay the highest electricity rates in the country. Here’s the twist: the electricity rates for miners are higher than those for factories, hospitals, or even government buildings. Why? Because the government wants to make mining expensive enough to discourage it. But here’s the catch: they still haven’t fixed the grid. And when the power goes out, they blame miners.The Energy Trap: Power Outages and Blame Games
Iran’s electricity is cheap-around $0.004 per kWh for industrial users. That’s why, in 2021, Iran was responsible for nearly 5% of all Bitcoin mining worldwide. But cheap power doesn’t mean reliable power. In the summer of 2024, nationwide blackouts lasted for weeks. The government shut down all mining operations for four months. They claimed illegal miners were stealing 2,000 megawatts of electricity-enough to power a city the size of Tehran. But independent analysts say that’s exaggerated. Tavanir, Iran’s state power provider, admits the grid is old and poorly maintained. The real issue? The government hasn’t invested in upgrades. Instead, they use mining as a scapegoat. Every time the lights go out, they blame crypto miners. Then they ban mining. Then they lift the ban. Then they raise electricity rates. Rinse and repeat.Who’s Really Mining? The IRGC and Hidden Factories
While private miners scramble to get licenses, powerful groups operate openly without paying a dime. The Islamic Revolutionary Guard Corps (IRGC) runs at least one 175-megawatt mining farm in Rafsanjan, Kerman province. It’s a joint venture with Chinese investors. They don’t pay for electricity. They don’t report their profits. And they don’t need a license. This isn’t an exception-it’s the rule. State-linked entities control an estimated 65% of Iran’s total mining capacity. They use mosques, religious centers, and government buildings to tap into free power. Meanwhile, licensed miners pay 10 times more for electricity and still get cut off during peak hours. The system isn’t broken-it’s designed this way.
The Licensing Nightmare: Paperwork, Delays, and Dead Ends
Getting a license sounds simple: apply to the Ministry of Industry, Mine and Trade, then get approved by the CBI. But the process takes months. You need:- Proof of approved mining hardware (only specific ASIC models are allowed)
- A detailed energy consumption plan
- Proof of bank account with the CBI
- A financial audit from a government-approved firm
Advertising Is Now Illegal. So Is Public Use.
In February 2025, Iran banned all cryptocurrency advertising-online and offline. No more YouTube videos. No more billboards. No more Facebook posts. Even mentioning Bitcoin in public forums can get you fined. Trustpilot ratings for Iranian crypto exchanges dropped from 4.1 to 2.4 stars in two months. Users are angry. One Reddit user wrote: “I tried to buy Bitcoin to pay my rent. The app said ‘transaction failed.’ Then my phone showed a message: ‘You are not authorized to use this service.’” The government says this is to protect citizens from fraud. But it’s also to stop people from using crypto to bypass sanctions. And it’s working. TRM Labs reported an 11% drop in crypto inflows into Iran in the first half of 2025. Peer-to-peer trading is up-78% more on LocalBitcoins-but that’s not enough to keep the industry alive.
Why Foreign Investors Are Walking Away
Iran invited foreign investors in 2020 with promises of low costs and high returns. But the reality is brutal. You can’t open a bank account without a local partner. You can’t move money out without government approval. And if the power goes out next summer, your entire operation could vanish overnight. There’s no legal recourse. No arbitration. No protection. A Canadian mining company tried to set up shop in Shiraz in 2023. They spent $2 million on equipment. Six months later, the government froze their account, citing “unverified transaction patterns.” They lost everything. No one was punished. No one was held accountable.The Future: A State-Run Digital Currency
Iran isn’t trying to become a crypto hub. It’s trying to kill decentralized money. The Central Bank’s digital currency, called the “Rial Currency,” is already being tested. It’s not blockchain-based. It’s not transparent. It’s not mineable. It’s a centralized digital rial-controlled entirely by the government. You can’t trade it. You can’t send it abroad. You can only use it to pay for state-approved goods. This is the endgame: replace Bitcoin with a state-controlled token. Make mining irrelevant. Make crypto useless. And make sure only the regime benefits.What This Means for Miners in 2026
If you’re a private miner in Iran, you’re playing Russian roulette. The rules change every month. The power cuts every season. The government watches everything. Your license can be revoked without warning. Your equipment can be seized. Your money can disappear. The only people winning are those with political connections. Everyone else is just a footnote in a system that doesn’t care if you survive.The truth? Mining crypto in Iran isn’t about profit anymore. It’s about survival.