Iran: Household electricity now prohibited for crypto mining


The Energy Ministry of Iran announced that digital currency mining facilities that use household electricity will face heavy fines and other penalties.

Cryptocurrency mining is widely spread in the country of Iran, especially after 2019. After the Iranian government categorized mining as an industrial activity, a large number of companies started the activity all over the country. Low-cost electricity and power plants helped in the blossoming of this industry.


Mashhadi Rajabi, a spokesman of the ministry, said the measure was taken due to the dry period is experiencing which is causing a shortage of hydropower. Unlicenced mining creates many issues with the electricity supplying of the citizens. Crypto mining causes damages to the local power grid and transformers and can even generate blackouts throughout the country.

More than 1,000 licenses were issued by the Ministry of Industry, Mining, and Trade in 2020. Due to issues linked with the electrical grid, power plant companies proposed to offer mining activities their excess electricity. The government agreed to the proposal, but since it wasn’t able to guarantee subsidies on their fuel supplies, permitted them to mine digital currency themselves.

“According to the laws and regulations announced by the cabinet and the Energy Ministry, we have been allowed to allocate some capacity of our power plants for mining cryptocurrencies.”

Mashhadi Rajabi

“These turbines are not connected to the national grid and the electricity generated by them is only used by the power plant itself.”

Mashhadi Rajabi

Following last year’s directives, crypto mining is now allowed to use only the electricity that comes from power plants. Mining farms have to be registered by the government. Their owners have to verify their identities, the dimensions of their facilities, and the types of gadgets they are using.

What is a miner?

A miner is a person who earns cryptocurrency without having to put down money for it. Miners solve mathematical problems or “blocks” of verified transactions which are added to the blockchain. In return, they are rewarded with cryptocurrency.

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