Iran crypto restrictions: How state-backed mining fuels energy crises and sanctions
When you hear about Iran crypto restrictions, the government’s crackdown on private cryptocurrency use. Also known as crypto bans in Iran, it sounds like a simple effort to control digital currency—but the truth is far more twisted. While ordinary Iranians are told they can’t buy Bitcoin or trade Ethereum, the Islamic Revolutionary Guard Corps (IRGC) runs massive, unlicensed crypto mines using electricity stolen from the public grid. This isn’t a loophole—it’s official policy disguised as enforcement.
The IRGC crypto mining, state-run cryptocurrency operations funded by public power theft consumes up to 10% of Iran’s total electricity, according to independent energy analysts. Meanwhile, millions face daily blackouts, especially in winter. The mined crypto—mostly Bitcoin and Ethereum—isn’t sold on open markets. It’s funneled into offshore accounts to bypass U.S. and EU sanctions, turning digital assets into a covert currency for military and intelligence operations. This isn’t a few rogue miners. It’s a centralized, militarized operation with direct ties to Iran’s defense budget.
And here’s the cruel irony: when regular citizens try to mine crypto at home—even with a single rig—they risk fines, jail time, or their equipment being seized. But the IRGC? They get free power, no permits, and zero oversight. The Iran energy crisis, chronic power shortages caused by mismanagement and state-backed crypto mining isn’t an accident. It’s a direct result of priorities that favor regime survival over public welfare. The crypto sanctions evasion, use of digital assets to circumvent international financial controls works because Iran’s mining output is too large to track, too anonymous to trace, and too profitable to stop.
What you’ll find below aren’t just articles about crypto rules or blackouts. These are deep dives into how state power, digital currency, and energy theft collide in one of the world’s most contradictory crypto landscapes. You’ll see how a single policy—banning citizens from mining while letting the military run mines—creates a system where the poor pay with electricity, and the powerful pay with Bitcoin. This isn’t about freedom or control. It’s about who gets to profit, and who gets left in the dark.