Iran crypto mining: Why it's banned, how it still happens, and what it means for users

When you hear Iran crypto mining, the use of electricity and hardware to validate blockchain transactions in Iran, often to bypass financial sanctions. Also known as state-sanctioned mining, it's a high-stakes game where power grids, international law, and digital currency collide. Iran is one of the few countries where crypto mining isn’t just tolerated—it’s been a lifeline for ordinary people trying to protect their savings from hyperinflation and frozen bank accounts. But globally, it’s seen as a tool for evasion. The FATF blacklist, a list of countries deemed high-risk for money laundering and terrorist financing, including Iran, North Korea, and Myanmar puts Iran under constant pressure. Why? Because mined Bitcoin and other coins are often moved through offshore exchanges to fund military programs or buy banned goods, bypassing U.S. and EU sanctions.

Iran’s cheap electricity—mostly from state-subsidized natural gas—made it a hotspot for miners. At its peak, the country used as much power as Austria for mining alone. But in 2023, the government cracked down hard. They shut down thousands of illegal rigs, cut power to mining zones, and even arrested operators. The reason? The energy drain was hurting households. Winter blackouts became common. Meanwhile, the U.S. and EU tightened sanctions, making it illegal for foreign companies to sell mining hardware to Iran. Even buying a GPU there now carries risk. Yet mining didn’t die. It went underground. People now run rigs in basements, garages, and hidden warehouses, using smuggled equipment and fake permits. Some even trade mined coins directly for food, medicine, or gold on local black markets.

The crypto sanctions, global restrictions targeting nations like Iran that use cryptocurrency to avoid financial controls aren’t just about stopping mining—they’re about cutting off the entire crypto ecosystem. If you hold Bitcoin in Iran, you can’t cash out through regulated exchanges. You can’t use PayPal, Coinbase, or Binance. Your only options are peer-to-peer trades, Telegram groups, or unregulated local traders who charge high premiums. And if you’re caught? Fines, confiscation, or worse. The crypto ban Iran, official government policy restricting crypto use to prevent capital flight and sanctions evasion isn’t written in law—it’s enforced through power cuts, bank freezes, and police raids.

What you’ll find in the posts below isn’t theory. It’s real cases: how miners survive, how sanctions are circumvented, and why Iran remains on the FATF list while other countries quietly turn a blind eye. You’ll see how the same tools that let people in Iran buy groceries with crypto are the same ones that fund weapons programs abroad. There’s no clean side here—only survival, risk, and consequences.