Study: Iran Leverages Crypto Mining As a Tool To Reduce The Effect of Sanctions

Published by
Study: Iran Leverages Crypto Mining As a Tool To Reduce The Effect of Sanctions

Decentralized cryptocurrencies have often come to the rescue of the nations facing strong sanctions by higher economic powers and Iran is one of them. As per a recent study, Iran is currently leveraging the power of crypto mining to lessen the impact of sanctions that it faces from America.

As per Reuters, Iran alone contributed 4.5% of the overall Bitcoin mining. This helps the country to earn millions of dollars through crypto-assets. Citing data from blockchain analytics firm Elliptic, the publication reports, Iran clocks nearly $1 billion in yearly revenue with its Bitcoin production.

As we know, Bitcoin (BTC), Ethereum (ETH), and many other cryptocurrencies still rely on the Proof-of-Work (PoW) consensus model that involves mining done using high computing power. These machines consume a high amount of electricity.

Thus, most miners are usually concentrated in areas having surplus fossil fuel supply to generate the required electric power. Iran holds good leverage when it comes to fossil fuel production. Iran’s surplus and cheap electric power has attracted miners, especially from China.

Citing the opportunity here, Iran has officially recognized crypto mining as a legal business in recent years. However, the country prohibits the use and trade of Bitcoin as well as other cryptocurrencies.

Iran Accepts In-house Mined Bitcoins and Crypto

While Iran facilitates cheap and surplus power to miners, it requires them to sell their mined Bitcoins to the central bank. Besides, Iran also allows the use of cryptocurrencies mined in Iran to pay for the imports of authorized goods. The study notes:

“Iran has recognised that bitcoin mining represents an attractive opportunity for a sanctions-hit economy suffering from a shortage of hard cash, but with a surplus of oil and natural gas.

The Iranian state is therefore effectively selling its energy reserves on the global markets, using the Bitcoin mining process to bypass trade embargoes.

Iran-based miners are paid directly in Bitcoin, which can then be used to pay for imports – allowing sanctions on payments through Iranian financial institutions to be circumvented.”

However, a lot of big financial firms have started offering crypto-based services to their clients. Potentially, if these firms, especially based out of America, come to know any Bitcoin transactions coming from Iran, there could be additional levels of sanctions in the near future.

Advertisement

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Matrixport Predicts Market Direction as $6B Bitcoin, Ethereum, XRP Options Expire Today

Traders are bracing for another crypto options expiry and US CPI inflation release today, with…

October 24, 2025
  • News

Why is Crypto Market Up Today (Oct 24)

The crypto market is glowing green as bullish sentiment returns. This comes amid positive developments…

October 24, 2025
  • News

Breaking: 21Shares Amends Sui ETF with Staking, Nasdaq Listing, Other Key Details

21Shares updates its Sui ETF application with the U.S. Securities and Exchange Commission (SEC). The…

October 24, 2025
  • News

Binance’s Changpeng Zhao Takes on Senator Elizabeth Warren On False “Fraud” Allegations

Democrat Elizabeth Warren has made sharp attacks with "fraud" and money laundering allegations, following US…

October 24, 2025
  • News

Trump Tariffs: Crypto Market Volatility Looms As US President Terminates Trade Talks With Canada

The crypto market is bracing for volatility after the U.S. President announced the termination of…

October 24, 2025
  • News

Coinbase CEO Says Market Structure Bill Will Pass by Year-End Despite Government Shutdown

Coinbase CEO Brian Armstrong has said he expects the long-awaited U.S. crypto market structure bill…

October 24, 2025