Iranian Central Bank Mandates Crypto Sales from Miners Under New 2025 Regulations

Iran’s cryptocurrency mining industry is no longer just about electricity bills and cooling rigs. Since January 2025, every miner operating in Iran must sell a portion of their mined cryptocurrency directly to the Central Bank of Iran (CBI). It’s not optional. It’s not a suggestion. It’s the law.

Why the Iranian government is forcing miners to sell

Iran has been mining crypto for years-not because its people love Bitcoin, but because it needs dollars. U.S. sanctions cut off Iran’s access to global banking, so the government turned to crypto mining as a way to earn foreign currency without touching traditional financial systems. But here’s the problem: miners were keeping their coins. They were selling them on black-market exchanges, turning Bitcoin into rials, and pocketing the profit. The government wasn’t getting a cut.

In 2025, that changed. The CBI took full control of the crypto sector, demanding that all mining operations register, get licensed, and hand over a percentage of their output. The exact percentage isn’t public, but reports suggest it ranges from 20% to 40% of total production, depending on the size of the operation. Large farms linked to the Islamic Revolutionary Guard Corps (IRGC) are required to surrender even more-up to half their output-to state-controlled vaults.

This isn’t just about revenue. It’s about control. By forcing miners to sell to the CBI, the government ensures that every Bitcoin, Ethereum, or USDT entering the country flows through a single, monitored pipeline. The bank then converts these coins into dollars or euros and uses them to import essential goods-medicine, food, industrial parts-that sanctions have made hard to get.

How the mandatory sale system works

Miners don’t get to choose where they sell. They’re assigned a CBI-approved digital wallet linked to their registered mining rig. Every time a block is mined, a portion of the reward is automatically transferred to the bank’s wallet. The rest stays with the miner-but only if they’re licensed.

Unlicensed miners? They’re out of luck. The government has cracked down hard. In late 2024, rolling blackouts hit cities like Tehran, Isfahan, and Kerman after authorities shut down over 300 illegal mining farms. These weren’t small operations. Some were 100-megawatt facilities hidden in warehouses or inside military bases. The CBI says these farms were using up to 20% of Iran’s total electricity-enough to power entire neighborhoods.

Licensed miners, on the other hand, get subsidized power. Electricity costs as little as $0.01 per kWh in some regions. But there’s a catch: the CBI monitors every watt used. If your rig draws more than your licensed capacity, your power gets cut. No warnings. No appeals.

Who’s allowed to mine now

Only three types of entities can legally mine in Iran:

  • State-affiliated entities-mostly IRGC-linked companies with direct access to power grids and security clearance.
  • Government-licensed private firms-mostly tech startups that passed strict KYC and AML checks. They must submit daily mining logs, IP addresses of all rigs, and real-time energy consumption data.
  • Foreign joint ventures-mostly Chinese firms with partnerships in Iran’s special economic zones. These companies must repatriate 70% of their profits to Iran’s state treasury.
Individual miners? They’re practically banned. A few hundred small-scale miners were grandfathered in, but they must sell 30% of their output to the CBI and submit weekly reports. If they’re caught mining without a license, their equipment is seized-and they face fines up to 100 million rials (about $2,000), which is more than most earn in a year.

A miner watches as 20% of his mined Bitcoin is automatically sent to the central bank, power outages looming outside.

The black market still thrives

Despite the crackdown, crypto trading hasn’t disappeared. In fact, it’s gone underground. On Telegram channels and encrypted apps, Iranians still trade Bitcoin for rials. Prices are higher than official rates-sometimes 30% higher-but people don’t care. The rial lost over 60% of its value in 2024. For many, crypto is the only way to protect savings.

The CBI knows this. They’ve tried blocking access to crypto exchanges. They’ve shut down 12 major peer-to-peer platforms. But people keep finding new ways. Some use proxy servers. Others trade in cash through intermediaries. A few even use mining rigs as ATMs-mining a little, selling a little, and keeping the rest.

The government’s response? More surveillance. In early 2025, they rolled out a national blockchain monitoring system that tracks all cryptocurrency transactions linked to Iranian IP addresses. If you’re sending Bitcoin to a foreign wallet, the CBI sees it. If you’re mining and not reporting it, they’ll find you.

What this means for global crypto markets

Iran is now the 6th largest Bitcoin miner in the world, producing around 4.5% of global hash power. That’s more than Canada and Norway combined. And now, a significant chunk of that output is being funneled into state coffers instead of global exchanges.

This has real effects. Fewer Iranian-mined coins are hitting public markets. That means less selling pressure on Bitcoin prices. Analysts at CoinMetrics noticed a 12% drop in daily Bitcoin inflows from Iran in the first quarter of 2025 compared to 2024. It’s not enough to move the market, but it’s enough to matter.

Meanwhile, Chinese mining equipment makers are adapting. They’re now selling rigs with built-in CBI compliance modules-software that auto-sends a portion of mined coins to a government wallet. No manual setup. No user control. Just compliance.

Underground traders exchange cash for crypto in Tehran while a CBI surveillance drone scans blockchain activity above.

The human cost

Behind the numbers are real people. A 28-year-old miner in Mashhad told a local reporter he used to earn $800 a month mining Ethereum. Now, after handing over 30% to the bank, he makes $560. He pays his rent, buys groceries, and still has enough to save a little. But he’s scared. He heard a neighbor got arrested last month for using a second rig without declaring it.

Others aren’t so lucky. In Kerman, a group of miners tried to smuggle out 12 Bitcoin in a hidden USB drive. They were caught at the airport. The Bitcoin was confiscated. The men got two years in prison.

The CBI says it’s protecting the economy. Critics say it’s creating a digital dictatorship. Either way, Iran has turned mining from a grassroots movement into a state-run extraction program.

What’s next for Iran’s crypto policy

The government is now testing a digital rial on Kish Island-a pilot project meant to replace cash and reduce dollar dependence. If it works, they’ll roll it out nationwide. That could mean even tighter control over crypto. Imagine a system where you can’t buy Bitcoin unless you first convert your rials to the digital rial-and the government tracks every step.

Some experts think Iran will eventually ban private mining entirely. Others believe they’ll keep the system as-is: state-run extraction with a thin veneer of legality. Either way, one thing is clear: if you’re mining in Iran, you’re not working for yourself. You’re working for the bank.

The CBI doesn’t care if you believe in crypto. They care if it earns them dollars. And right now, that’s the only coin that matters.

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