Energy Subsidies Iran: How State Support Shapes Crypto and Energy Markets

When you hear energy subsidies Iran, government payments that lower the cost of electricity, fuel, or gas for citizens and industries. Also known as state-backed energy pricing, it’s a system where the Iranian government absorbs most of the cost of power so households and businesses pay far below market rates. This isn’t just about keeping lights on—it’s one of the biggest hidden drivers behind Iran’s unexpected role in global crypto mining.

Because electricity costs as little as $0.01 per kWh in some parts of Iran, crypto mining became a natural fit. Miners—individuals and small operations—set up racks of ASICs in garages and warehouses, running them nonstop. Unlike the U.S. or Europe, where high energy prices make mining unprofitable, Iran’s subsidies turned it into one of the top five global hubs for Bitcoin mining by 2023. This wasn’t planned. It happened because people found a way to use what was freely available. And while the government didn’t officially endorse it, they also didn’t shut it down—until they started taxing it. Now, miners must register, pay fees, and buy electricity through state-approved channels. But the infrastructure is already there. The same cheap power that powers mining also makes stablecoin transactions viable for remittances and black-market trade, especially when international banking is blocked. This creates a loop: subsidies enable crypto activity, and crypto activity pressures the government to regulate—or profit from—it.

What you won’t find in official reports is how this affects everyday Iranians. Many use crypto not to speculate, but to protect savings from inflation or send money home from abroad. The same energy policy that lets a miner run 100 machines also lets a family pay for groceries using USDT. And while countries like the U.S. and Singapore crack down on unregulated exchanges, Iran’s situation is the opposite: the state can’t fully control what it can’t stop. The result? A messy, decentralized, and surprisingly resilient crypto ecosystem built on the back of subsidized power.

Below, you’ll find real examples of how energy policy, crypto adoption, and government control collide—from banned exchanges to hidden mining operations, and the tokens that survived because someone had access to cheap electricity. These aren’t theoretical trends. They’re lived realities shaped by a single factor: how much you pay for the power to turn a computer on.