Iran's Crypto Evolution: Mining, Trading, and Government Control in 2025

A Digital Escape Amid Sanctions and Inflation

In a country wrestling with inflation, sanctions, and economic instability, cryptocurrency has emerged as a surprising hero in Iran. Whether it's mining Bitcoin in basements, trading USDT on local exchanges, or safeguarding wealth with stablecoins, Iranians are navigating the digital asset space with creativity and caution. But it’s not all freewheeling. The Iranian government is watching—and regulating—closely.

Let’s dive into the crypto scene in Iran: mining, trading, investing, and the evolving legal framework.

Crypto Mining in Iran: From Legalization to the Shadows

Iran officially recognized crypto mining as a legal industry in 2019, and for a moment, it looked like a win-win. The government hoped to generate revenue, and miners got a legal framework to operate within. But that optimism didn’t last long.

Legal But Pricey

Licensed miners in Iran must:

Register with the Ministry of Industry

Pay high electricity tariffs (no more subsidies here)

Sell mined crypto directly to the Central Bank

With electricity rates rising and inspections tightening, many miners moved underground—literally.

Underground Mining on the Rise

High energy costs have pushed over half of Iranian miners into illegal operations. These rogue miners often tap into subsidized residential or industrial electricity, causing major headaches for the national power grid.

Rolling Blackouts & Clampdowns

Mining was blamed for Iran’s power shortages in recent years. The government responded by temporarily banning mining in summer months and launching raids on illegal farms. Some reports even suggest mining equipment being confiscated and repurposed.

Iran’s Share of Global Hashrate

In 2021, Iran contributed around 4.5% of the global Bitcoin hashrate. By 2024, that number dipped below 3.1%, reflecting a shift from official operations to the underground market.

Investment & Trading: Crypto as a Financial Lifeline

Iran’s economy has long battled hyperinflation and a plummeting rial. In such conditions, digital assets aren’t just speculative—they’re survival tools.

Stablecoins to the Rescue

With the rial’s volatility, many Iranians prefer holding assets like USDT (Tether) or USDC. These stablecoins offer:

Protection against local currency devaluation

A quick and discreet way to store or transfer value

Relative stability during economic chaos

Booming Local Exchanges

Enter Nobitex, Iran’s leading crypto exchange. Nobitex alone processed nearly 87% of all Iranian crypto volume in 2022. Most users prefer the TRON blockchain, which accounts for over 65% of transactions—mainly due to its low fees and fast settlements.

Cross-Border Transfers

In 2024, Iranian exchanges witnessed over $4.2 billion in crypto outflows—a 70% surge from the previous year. These funds often move abroad for trade, savings, or family support, bypassing banking restrictions and U.S. sanctions.

Regulations: Control, Censorship & the Digital Rial

If you thought the Iranian government was going to let crypto run free—think again.

Crypto-to-Fiat? Not So Fast

In December 2024, Iran banned all crypto-to-rial transactions via websites. By early 2025, only government-authorized platforms can operate such services, and they must provide full access to user data through a state API.

Advertising Ban

To curb "uncontrolled crypto hype," Iran banned all crypto-related advertising—online, offline, billboards, influencers, you name it.

Enter: The Digital Rial

Iran joined the CBDC club with a pilot of its Digital Rial on Kish Island in June 2024. Unlike decentralized crypto, the Digital Rial:

Is fully state-controlled

Tracks every transaction

Has strict use cases for domestic payments

The government’s goal? Reduce reliance on private cryptos and monitor capital movement.

Risks & Challenges: Sanctions, Energy & Surveillance

Cryptocurrency in Iran isn’t just about investment—it’s geopolitics.

Sanctions Evasion

Iran has used crypto to sidestep international sanctions, paying for imports or financing deals without touching traditional banking. This tactic has drawn global scrutiny, especially from the U.S. and European regulators.

Energy Drain

Mining is often blamed for straining Iran’s fragile energy grid. Despite having some of the world’s cheapest electricity, poor infrastructure and mismanagement make mining a lightning rod for criticism.

Surveillance & Crackdowns

As crypto adoption rises, so does state surveillance. With mandated user tracking on exchanges and limited privacy options, Iranian users must walk a fine line between innovation and intrusion.

Conclusion: Digital Freedom or Tighter Leash?

Crypto in Iran is a paradox. On one hand, it's a lifeline for millions trying to escape economic ruin. On the other, it’s a battleground where innovation collides with regulation, and freedom contends with state control.

In 2025, Iran's crypto story is still being written—with miners going underground, traders moving billions across borders, and the government tightening its grip.

Whether crypto will empower individuals or be swallowed by central control remains the question of the decade.