Bitcoin Mining Laws: What’s Legal, What’s Not Around the World

When you mine Bitcoin, a decentralized digital currency that relies on proof-of-work to validate transactions and secure its network. Also known as cryptocurrency mining, it’s the engine that keeps Bitcoin running—but its legality isn’t the same everywhere. Some countries treat it like a utility, others like a crime. The rules depend on energy policy, financial control, religious law, and how much the government fears losing power over money.

Take Pakistan, a country with surplus electricity that’s trying to turn idle power into a crypto mining industry. In 2023, it allocated 2,000 megawatts just for mining, hoping to attract foreign investment. But the IMF is watching closely, worried about subsidies and black-market energy use. Meanwhile, in El Salvador, the only nation to make Bitcoin legal tender, mining is not just allowed—it’s part of national strategy. The government even built geothermal mining farms using volcanoes to cut costs. On the other end of the spectrum, the Taliban, a regime enforcing a strict interpretation of Sharia law, banned all crypto mining outright. They see digital money as uncontrolled, speculative, and against Islamic finance principles. And in places like Morocco, crypto is technically illegal, but people still use it to send money abroad because banks are too slow and expensive.

It’s not just about where you live—it’s about what you’re allowed to use. Some countries ban mining but allow holding Bitcoin. Others tax mining income heavily. A few, like Costa Rica, have no clear rules yet, so people operate in the gray zone. Your power bill, local regulations, and even your internet provider can make the difference between running a miner legally or risking fines or worse.

What you’ll find below are real-world examples of how Bitcoin mining laws shape who can mine, where they can do it, and how they survive when the rules change. From underground operations in Afghanistan to state-backed farms in Pakistan, these stories show the raw, unfiltered reality of mining in a world where money is still controlled by borders.