Tajik authorities criminalize illegal cryptocurrency mining

Source: CryptoNewsNet Original Title: Tajik authorities criminalize illegal cryptocurrency mining Original Link:

Overview

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.

Criminal Penalties for Illegal Mining

The government of Tajikistan is introducing criminal punishment and financial penalties for unauthorized consumption of electricity to mint digital coins. Legislative amendments have been recently approved by the Central Asian nation’s bicameral legislature.

An article prosecuting the “illegal use of electricity for the production of virtual assets” has been added to the country’s Criminal Code. Under its provisions:

• Individuals who power mining hardware against the law are subject to a fine of between 15,000 and 37,000 somoni (approximately $1,600 – $4,000)
• Organized groups will be fined up to 75,000 somoni (a little over $8,000), with imprisonment for two to five years
• Electricity theft on an “especially large scale” will carry sentences of five to eight years behind bars

Justification for the Measures

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 prosecutor noted that “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 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 illicit operation of energy-hungry mining hardware in Tajikistan is estimated to have caused 32 million somoni (around $3.5 million) in financial losses for the state.

The adopted amendments also aim to prevent tax evasion by those engaged in cryptocurrency mining.

Regional Context

Nations in Central Asia and the former Soviet space attracted Bitcoin miners following China’s decision to enforce a ban on crypto mining. Countries like Kazakhstan and Russia have similarly faced electricity shortages blamed on mining operations.

Kazakhstan addressed the issue by introducing strict regulations and increasing electricity rates for mining enterprises. The Russian Federation, which legalized cryptocurrency mining in 2024, is still trying to contain the issue by completely banning or limiting mining in more than 10 regions with high concentrations of crypto farms.

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