Iraq Crypto Mining Energy Calculator
Estimated Daily Costs
Back in 2017, Iraq made a bold move: it banned cryptocurrency mining and trading outright. No licenses. No exceptions. Just a flat-out prohibition from the Central Bank of Iraq. Five years later, the ban is still in place-and it’s one of the strictest in the world. While countries like China shut down mining for environmental reasons and others like El Salvador embraced Bitcoin, Iraq doubled down on control, fearing chaos in its fragile economy. But here’s the twist: despite the ban, crypto is still alive in Iraq. Not in banks. Not in offices. But in hidden rooms, whispered conversations, and encrypted chats.
Why Did Iraq Ban Crypto in 2017?
The Central Bank of Iraq didn’t wake up one day and decide to outlaw Bitcoin out of nowhere. The decision came from real fear. Iraq’s financial system was-and still is-fragile. Banks struggled with corruption, cash shortages, and a lack of digital infrastructure. The bank saw cryptocurrencies as untrackable, untaxable, and uncontrollable. No central authority. No paper trail. No oversight. That’s a nightmare for any government trying to keep its economy stable.
They worried about money laundering. They worried about fraud. They worried about people losing life savings to volatile coins like OneCoin, which turned out to be a scam. In 2018, the Kurdistan Regional Government added weight to the ban by issuing a religious fatwa against digital currencies, calling them incompatible with Islamic finance principles. Suddenly, the ban wasn’t just financial-it was moral too.
And then there was the energy angle. Bitcoin mining eats electricity. A lot of it. Greenpeace USA pointed out that Iraq, already struggling with power outages, couldn’t afford to let miners drain the grid. So the Central Bank didn’t just ban trading-it banned the machines that mine crypto. No ASICs. No rigs. No running your home in Baghdad like a mini data center.
Who’s Still Mining? And How?
If you walk through Baghdad today, you won’t see crypto mining farms. But if you know where to look, you’ll find them.
Ahmed Crypto, a 33-year-old from Baghdad, used to run a small operation out of a rented office. Then came the warnings. The visits. The threats. Now he works from his bedroom, using a single miner hidden under his bed. He trades over Facebook Messenger, not apps. He doesn’t use exchanges. He meets buyers in cafes-quiet ones, far from police stations. He owns $10,000 worth of Bitcoin and Ethereum. He says the ban is "backward," but he’s not fighting it. He’s just working around it.
Others aren’t so lucky. At least two people have been arrested for crypto-related activities, according to underground sources. But here’s the odd part: no one’s been formally tried. Lawyer Hayan Al-Khayyat says he’s never seen a court case tied to crypto mining or trading. That means enforcement is random. Sometimes it’s a warning. Sometimes it’s a raid. Sometimes it’s nothing at all.
Miners use VPNs, burner phones, and cash-based peer-to-peer trades. Some even use the dark web to buy hardware. They share tips in encrypted Telegram groups. They avoid talking about mining in public. The community calls it "the whisper economy."
How the Ban Hurts Iraq’s Economy
The ban wasn’t just about stopping crypto. It was about protecting the Iraqi dinar. But the unintended consequences are biting back.
Businesses that rely on international trade are stuck. Sending money abroad? It takes weeks. Banks freeze transfers. Fees skyrocket. Some importers pay in cash, carrying suitcases of dinars to border crossings. Others use informal hawala networks-old-school money brokers who move cash without digital records.
Cryptocurrencies could’ve helped. Imagine a small business owner in Basra buying parts from Turkey. With Bitcoin, the payment clears in minutes. With Iraqi banks? It takes 10 days. And if the bank suspects anything unusual? The funds vanish. No explanation. No appeal.
Even remittances suffer. Iraqis abroad send home billions each year. Most go through Western Union or hawalas. But if they could send crypto directly to a family member’s wallet, it’d be faster, cheaper, and safer. Instead, families wait. And pay more.
Global Context: Where Does Iraq Stand?
Iraq isn’t alone. As of 2025, only about ten countries have total crypto bans. China shut down mining in 2021. Egypt banned it over religious concerns. Bangladesh criminalizes possession. Bolivia reversed its ban in 2024. Russia walks a tightrope-banning payments but allowing mining.
Iraq is one of the few places where the ban is absolute and unchanged. No pilot programs. No regulatory sandboxes. No discussions with tech experts. The Central Bank still issues public warnings every few months. Their message hasn’t changed: "Digital currencies are dangerous. Don’t touch them."
But while China crushed its mining industry with force, Iraq’s ban is more like a ghost. The rules exist on paper. But underground, the machines keep running.
Could Iraq Change Its Mind?
Some in Iraq’s crypto community think change is coming. Not soon. But eventually.
Ashur Al-Nuaimi, another miner, says the bank doesn’t understand blockchain. They see Bitcoin as gambling. But it’s not. It’s a ledger. A system. A tool. If they understood that, he argues, they’d see how it could help tax collection, reduce fraud, and bring in new revenue.
Imagine this: Iraq legalizes crypto mining under strict rules. Miners pay a small license fee. They use renewable energy-solar panels on rooftops. The government takes a cut of every transaction. Suddenly, the underground economy becomes a tax base. The electricity crisis? Miners pay for their own power. The banks? They get a new stream of income.
But right now? No one’s talking about it. The Central Bank hasn’t signaled any shift. No officials have suggested reform. The ban stays. And the miners? They keep whispering.
What This Means for You
If you’re in Iraq and you’re thinking about crypto: know the risks. You can’t use banks. You can’t use exchanges. You’re on your own. One wrong move could mean trouble.
If you’re outside Iraq and you’re curious: understand that this isn’t just about technology. It’s about control. About fear. About a country trying to hold onto stability in a world that’s moving too fast.
Crypto isn’t gone in Iraq. It’s just hiding. And as long as people need faster, cheaper ways to move money, it’ll keep finding ways to survive.
Terry Watson
November 20, 2025 AT 14:00Okay, so Iraq bans crypto… but people are still mining under their beds?? That’s not a ban-that’s a horror movie plot! I mean, imagine your WiFi router suddenly starts humming like a jet engine at 3 AM, and you realize your neighbor’s running a rig under his mattress… with a VPN and a burner phone. This isn’t resistance. This is survival. And honestly? I respect it.
Sunita Garasiya
November 20, 2025 AT 21:00So the government banned Bitcoin because it’s "untrackable"… but they’re totally fine with hawala networks that move billions in cash with zero digital footprint? 🤔 Funny how morality only applies when it’s convenient. Also, calling crypto "un-Islamic" while letting cash smuggling thrive? That’s not faith-that’s hypocrisy with a fatwa.
Mike Stadelmayer
November 21, 2025 AT 11:02It’s wild how the same people who scream about "financial sovereignty" when it comes to oil are terrified of a decentralized ledger. Iraq’s economy is stuck in 1998, but the world’s already on blockchain 3.0. The ban isn’t protecting the dinar-it’s protecting the old guard. And guess who suffers? The people trying to send money home or buy parts for their shop. They’re not criminals. They’re just trying to live in the 21st century.
Norm Waldon
November 21, 2025 AT 18:24Let me be crystal clear: this is a Marxist-Leninist power grab disguised as economic policy. The Central Bank fears losing control, so they outlaw innovation. This is exactly how the Soviet Union treated the internet in the 80s-deny it, punish it, pretend it doesn’t exist. And yet, here we are. Crypto thrives in the shadows. The state is weak. The people are resourceful. And the truth? The ban is already dead. It just hasn’t been buried yet.
neil stevenson
November 22, 2025 AT 19:31Man, I just saw a video of a guy in Baghdad using a solar panel on his roof to power his miner… and trading BTC via FB Messenger 😭. That’s next-level hustle. I mean, we’re talking about people turning their homes into underground banks because the system failed them. Respect. Also, if you’re reading this and you’re in Iraq-stay safe. You’re not alone. 🤝
Samantha bambi
November 23, 2025 AT 11:45It’s not just about money. It’s about dignity. When your government makes it impossible to send cash home to your mother without waiting 10 days and paying 15% fees, you don’t choose crypto-you choose survival. And when you’re forced to whisper your transactions like a secret society? That’s not rebellion. That’s grief. And grief doesn’t need a license.
Anthony Demarco
November 23, 2025 AT 19:17Lynn S
November 24, 2025 AT 12:17Let me be perfectly clear: cryptocurrency is a speculative, unregulated, and inherently destabilizing instrument that has no place in any functioning economy. The Central Bank of Iraq is not merely prudent-it is visionary. To suggest otherwise is to ignore centuries of monetary theory and embrace the dangerous whims of tech bros who think blockchain can solve poverty. This is not innovation. It is financial anarchy dressed in digital clothing.
Jack Richter
November 25, 2025 AT 03:23So… people are still mining? Cool. Guess I’ll just scroll past this now.
sky 168
November 26, 2025 AT 11:19Devon Bishop
November 27, 2025 AT 05:31Wait-so if miners use solar panels and pay for their own power, why isn’t the gov’t taxing them? That’s free energy revenue right there! And if they’re using P2P, why not create a licensed wallet system that logs transactions but doesn’t track identities? It’s not rocket science. The bank’s just scared to talk to devs. I’ve helped set up similar systems in rural Nigeria-same problem, different country. They just need a bridge, not a wall.