Tajikistan is taking a firm stance against illegal Bitcoin mining operations that utilize stolen electricity, with new legislative measures aimed at curbing this illicit activity. The country”s parliament has put forward amendments to the Criminal Code, which include significant fines and potential prison sentences for offenders.
Under the newly introduced Article 253(2), individuals found guilty of mining cryptocurrencies with electricity siphoned from the national grid could face fines ranging from $1,650 to $8,250. More serious violations, particularly those involving large-scale operations, could lead to prison sentences of two to five years. In cases deemed “especially large scale,” offenders may face even harsher penalties, with prison terms extending from five to eight years.
These legal changes were discussed and approved on December 3, as noted by Attorney General Khabibullo Vokhidzoda. He highlighted the urgent need for these measures, citing that illegal mining activities have already resulted in regional power outages and damages estimated between $3.5 million and $4.26 million. The Attorney General stated, “The illegal circulation of virtual assets facilitates a number of crimes, such as the theft of electricity, material damage to the state, money laundering, and other offenses.”
Local authorities have observed a troubling trend, with reports indicating that many miners are connecting thousands of ASIC devices to the electricity grid unlawfully. Lawmaker Shukhrat Ganizoda emphasized the tactics used by these miners to evade detection, often employing methods to use electricity without proper metering or authorization. The new regulations not only aim to address theft but also focus on preventing tax evasion and ensuring compliance with state regulations concerning cryptocurrencies.
Tajikistan, which relies heavily on hydropower for its electricity—accounting for nearly 95% of its supply—faces particular challenges during the winter months when water levels drop, exacerbating power shortages. Following China”s ban on crypto mining in 2021, many miners from Russia and other nations have relocated to Central Asia, drawn by the region”s low electricity costs and lax regulations. This influx has made illegal mining more prevalent, prompting the government to take decisive action.
The new law will come into effect following the signature of President Emomali Rahmon and its publication in the official gazette. Officials are optimistic that these regulations will safeguard the national electricity system, mitigate financial losses, and ensure that crypto mining activities operate within legal boundaries while also curbing associated illegal profits and crimes linked to digital assets.
