Tajikistan to imprison people for underground cryptocurrency mining

The Tajik Parliament has adopted important amendments to the Criminal Code concerning illegal cryptocurrency mining. The new bill adds Article 253(2), "Illegal Use of Electricity for the Production of a Virtual Asset," which introduces strict penalties for violators.

Key Provisions of the Amendments

According to the new regulations, the following penalties are prescribed for the illegal use of electricity for cryptocurrency mining:

- Fines: $1,650 to $4,070 for individual violations.
- Group Offenses: If the violation is committed by a group of individuals and on an especially large scale, fines will range from $4,125 to $8,250, as well as possible imprisonment for two to five years.
- Electricity theft: Theft of electricity on an especially large scale for cryptocurrency mining by a group is punishable by imprisonment for a term of five to eight years.

Problems Caused by Illegal Mining

Tajikistan's Prosecutor General, Habibullo Vohidzoda, expressed concern about the consequences of illegal mining, which leads to power shortages and outages in certain regions of the country. Authorities are also concerned about the potential for electricity theft through illegal mining farms, which causes financial losses to the state and facilitates the laundering of criminal proceeds.

According to Vohidzoda, the total damage from illegal mining in Tajikistan amounted to $3.52 million. Law enforcement agencies have already opened approximately five criminal cases related to the smuggling of mining equipment and illegal connection to state power grids.

Impact on the Power Grid

A standard ASIC miner consumes up to 3.5 kWh, while more powerful models consume around 5–6 kWh. Shukhrat Ganizoda, a member of the Tajik parliament, noted that large mining farms use thousands of powerful devices, creating a huge load on the power grid. Criminals often connect electricity without meters to reduce operating costs and increase profits.

Goals of the Amendments

The amendments to the Criminal Code are also aimed at preventing miners from evading taxes. They will come into force after being signed by President Emomali Rahmon.

Thus, Tajikistan is taking decisive steps to combat illegal mining, which negatively impacts the country's energy system and the economy as a whole.