Iran has recognized cryptocurrency mining in recent years and required licensed miners to make the digital currency they produce available through an official mechanism to finance imports. Legal activity in this sector, including the import and operation of mining equipment, is subject to licenses and regulations issued by the Ministry of Industry, Mine and Trade.

The report says mining at residential electricity rates is generally not economically viable, but using illegal connections or cheaper agricultural, industrial, commercial and public tariffs can make it profitable. IRNA also reported that many discovered mining farms had been using electricity from agricultural wells, closed industrial sheds or production facilities.

The Research Center states that revenue from illegal mining goes “entirely to illegal operators,” while the cost of energy is paid through public subsidies and power cuts affecting industries and households create additional costs.