High rates and strict regulations drive unauthorized mining. Because government taxes evade, illegal miners are profitable with ancient Asic. The illegal mining of Bitcoin (BTC) grows without brake in Iran, where about 800,000 unauthorized miners operate, according to Misah Alavi, CEO of Viraminer, an Iranian company dedicated to legal mining of cryptocurrency. Alavi exhibited at the specialized mining site The mining pod how the lack of accessible licenses and high rates imposed by the government have promoted the clandestinity of this activity.
A massive and clandestine activity
According to Alavi, while legal mining in Iran barely reaches 5 MW of active capacity and there are 400 MW of pending permits for authorized operations, Illegal mining consumes around 2 GW, about 400 times more than the 5 MW of legal mining. Many of these illegal Bitcoin miners install their equipment in unconventional places, such as basements of houses, offices, jewelry or exchange housesusing ancient ASIC models such as the Microbt Whatsminer M3 or the Bitmain Antminer S9, Alavi explained. These devices, launched in 2018 and 2016 when the difficulty of the network was much lower than the current one, have a computing power (hashrate) of 12 TH/S (Terahas per second) and 13.5 TH/S, respectively. Currently, the teams used by large miners are widely more powerful. For example, Bitmain ASIC S21 line models reach 860 TH/S. Although these two teams are practically obsolete for miners from other regions, their use remains profitable for Iran's illegal operators due to the low cost of electricity, to the Avoid tariffs imposed by the Government. A fact that reinforces the above by Alavi is what Nftevening on May 2 is revealed, when this site announced what countries with cheaper electricity costs were to undermine 1 BTC. The first place took Iran, with a figure of $ 1,300 per currency.
Iran has the lowest cost in the world in electricity to undermine 1 BTC. Source: Nftevening. On the other hand, according to that same source, the average price of the electricity necessary to undermine 1 BTC in The United States is 107.00 dollars. Thus, being able to access an both cheaper price, illegal miners in Iran can be profitable even with much less powerful equipment than those used in other regions.
The weight of rates and gas energy
Illegal miners in Iran access electricity at prices equivalent to those paid by residents, which allows them Maintain low operating costs, even obsolete teams. However, Alavi pointed out that, if these miners had to pay the rates imposed by the Government for legal operators, The cost would be «very expensive». In Iran, electrical rates for industrial activities such as legal mining are «the highest», especially because much of energy comes from gas fed plants. According to Alavi, Iran is the second country in the world in the amount of energy generated from gas, a resource that constitutes the main energy source of the country. The Viraminer CEO explained that the “poorly designed” regulations and tariffs have complicated obtaining licenses to legally operate. This has led to authorized miners opposite difficulties in covering operating expensessuch as store maintenance or hiring personnel, affecting their investment return. As a result, many choose to operate illegally, evading taxes and taking advantage of electrical subsidies to maximize profits.
A recurring global problem
The situation in Iran is not an isolated case. Cryptonotics has previously reported illegal mining cases and restrictions in other countries. In Russia, for example, the Ministry of Energy proposed in February 2025 to create a unique registry of mining equipment for Identify miners and control the activity. Although Russia legalized Bitcoin mining in August 2024, the Government maintained the power to impose restrictions. From January 1, 2025 until March 15, 2031, mining is prohibited in several regions, including areas of invaded Ukraine, arguing energy shortage and the need to prioritize heating during winter. In Venezuela, in March 2025, the authorities of the city of Maracaibo Bitcoin mining machines confiscated and prosecuted the person responsible for illicit possession of those teams. In Paraguay, the National Electricity Administration (ANDE) intensified its fight against electrical fraud linked to illegal mining. At the end of November 2024, 163 teams seized after detecting an illegal medium voltage derivation, with a heritage damage estimated at 665 million Guarani, about $ 85,000. Also, in Paraguay, an illegal farm was discovered with 7 ASIC under a church, consuming $ 1,300 per month in electricity. Cryptonotics notified that, between Venezuela and Paraguay more than 20,000 ASIC devices retained To undermine Bitcoin in 2024. Illegal Bitcoin mining in Iran exposes the difficulties to regulate an industry that operates on the margins. With 800,000 miners evading taxes and taking advantage of subsidized electricity, the government faces a structural challenge. This phenomenon, also seen in countries such as Russia and Paraguay, highlights how strict regulations can promote clandestine practices, complicating the balance between control and economic development.