New Laws Target Electricity Theft by Crypto Miners
Authorities in Tajikistan are set to implement severe new penalties for individuals and groups involved in cryptocurrency mining who are found to be using electricity without proper payment. These measures are designed to combat electricity theft within the sector and include substantial fines and potential prison sentences, particularly as the country anticipates a cold winter with existing power shortages.
The government of Tajikistan is introducing criminal punishment and financial penalties for the unauthorized consumption of electricity used for minting digital coins. These new measures were recently approved by the Central Asian nation’s bicameral legislature, according to local media reports.
An article specifically prosecuting the "illegal use of electricity for the production of a virtual asset" has been added to the country’s Criminal Code. Under the provisions of this new law, individuals found to be powering mining hardware illegally face a fine ranging from 15,000 to 37,000 somoni, which is approximately $1,600 to $4,000.
For cases involving an organized group, members of that group will be subject to fines of up to 75,000 somoni, equivalent to a little over $8,000. Additionally, these individuals could face imprisonment for a period of two to five years.
Electricity theft on an "especially large scale" for the purpose of cryptocurrency mining will carry even more severe sentences, with potential jail time ranging from five to eight years.
Tajikistan’s Prosecutor General, Habibullo Vohidzoda, presented the draft legislation to parliament, highlighting that the theft of electric energy through crypto farms has contributed to power shortages in several cities and regions. He explained that this phenomenon has compelled authorities to impose restrictions on electricity supplies and has "created conditions conducive to the commission of various crimes."
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 further emphasized the numerous instances of crypto farms being illegally connected to the national grid across Tajikistan. He noted that several investigations into these operations have already been initiated. The prosecutor alleged that the illicit operation of energy-intensive mining hardware in Tajikistan is responsible for approximately 32 million somoni, or around $3.5 million, in financial losses for the state.
He also pointed out that some individuals implicated in these activities have been importing coin minting equipment from abroad, which is also in breach of national law.
Shukhrat Ganizoda, a member of the Tajik legislature, stated that the newly adopted amendments are also intended to prevent tax evasion by those engaged in cryptocurrency mining.
These legislative changes will officially come into effect once the passed bill is signed into law by President Emomali Rahmon and subsequently published in Tajikistan’s official gazette.
Regional Context: Miners and Power Shortages
Nations across Central Asia and the former Soviet space became attractive destinations for cryptocurrency miners following Beijing's decision to ban crypto mining operations a few years ago. Among these nations are Kazakhstan, a regional economic powerhouse bordering Tajikistan to the north, and Russia. In both of these countries, cryptocurrency miners have been implicated in electricity shortages.
Kazakhstan initially addressed the issue by implementing strict regulations and increasing electricity rates for mining enterprises. However, the country has more recently lifted some restrictions on the industry.
The Russian Federation, which only recently legalized cryptocurrency mining through dedicated legislation in 2024, is still contending with the problem. Since the beginning of the year, Moscow has imposed complete bans or limitations on mining activities in over 10 regions with a high concentration of crypto farms.
Earlier this week, Deputy Prime Minister Alexander Novak announced that the Russian government plans to criminalize illegal mining activities.
In a related development last month, Tajikistan’s northern neighbor, Kyrgyzstan, announced the shutdown of all crypto mining facilities operating within its territory, citing increasing power deficits during the cold winter months.