Tajik authorities criminalize illegal cryptocurrency mining

The authorities in Tajikistan are ready to impose harsh new penalties for miners extracting cryptocurrencies using energy they never paid for.

The measures aimed at curbing electricity theft in the sector include hefty fines and prison sentences as the country faces another cold winter amid power shortages.

Tajikistan to fight illegal mining with fines and jail time

The government of Tajikistan is introducing criminal punishment and financial penalties for unauthorized consumption of electricity to mint digital coins.

That’s according to legislative amendments recently approved by the Central Asian nation’s bicameral legislature, local media revealed.

An article prosecuting the “illegal use of electricity for the production of a virtual assets” has been added to the country’s Criminal Code, the Asia-Plus portal reported on Tuesday.

Under its provisions, individuals who power mining hardware against the law are subject to a fine of between 15,000 and 37,000 somoni (approx. $1,600 – $4,000).

In case of an organized group, its members will be fined up to 75,000 somoni (a little over $8,000). They will also be facing imprisonment for two to five years.

Electricity theft on an “especially large scale” for the same purpose will carry longer sentences – five to eight years behind bars, the news outlet detailed.

Presenting the draft to the parliament, Tajikistan’s Prosecutor General Habibullo Vohidzoda pointed out that the stealing of electric energy through crypto farms has caused shortages in a number of cities and regions.

The phenomenon has led authorities to impose restrictions on electricity supplies and “created conditions conducive to the commission of various crimes,” the official elaborated. He was also quoted as stating:

“The illegal circulation of virtual assets facilitates a number of crimes, such as electricity theft, material damage to the state, money laundering, and other offenses.”

Vohidzoda highlighted the numerous cases of crypto farms found to be illegally connected to the grid across the former Soviet republic, noting that several investigations have been launched already.

The prosecutor alleged that the illicit operation of energy-hungry mining hardware in Tajikistan is to blame for 32 million somoni (around $3.5 million) in financial losses for the state.

He also remarked that some of the implicated individuals have been importing coin minting equipment from abroad, again in breach of national law.

The adopted amendments aim to prevent tax evasion by those engaged in cryptocurrency mining, as well, noted Shukhrat Ganizoda, a member of the Tajik legislature.

The changes will enter into force after the passed bill is signed into law by President Emomali Rahmon and published in Tajikistan’s official gazette.

Miners blamed for power shortages across the region

Nations in Central Asia and the former Soviet space attracted Bitcoin miners in the wake of Beijing’s decision to enforce a ban on crypto mining a few years ago.

Among them are the regional economic powerhouse, Kazakhstan, and Russia, which border it to the North. In both nations, crypto miners have been blamed for electricity shortages.

Kazakhstan dealt with the issue by introducing strict regulations and increasing electricity rates for mining enterprises. The country recently lifted some restrictions on the industry.

The Russian Federation, which only recently legalized cryptocurrency mining by adopting dedicated legislation in 2024, is still trying to contain the issue.

Since the beginning of the year, Moscow has completely banned or limited mining in more than 10 regions with high concentrations of crypto farms.

At the start of this week, Deputy Prime Minister Alexander Novak announced that the Russian government intends to criminalize illegal mining activities, as reported by Cryptopolitan.

Last month, Tajikistan’s northern neighbor, Kyrgyzstan, shut down all crypto mining facilities operating in its territory, citing growing power deficits during the cold winter months.

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