Iran’s cryptocurrency mining sector has spiraled into a large-scale illegal operation, with authorities estimating that the overwhelming majority of the country’s mining activity – over 95% of active devices – runs without proper authorization.

Akbar Hasan Beklou, head of the Tehran Province Electricity Distribution Company, revealed that Iran has quietly become the world’s fourth-largest crypto mining hub, driven largely by its extremely low electricity costs. These subsidies have turned the country into what he called a “haven for illegal miners,” who exploit cheap power and hide their activity behind industrial fronts.

Officials estimate that these illicit miners collectively draw more than 1,400 megawatts…