Tajikistan has introduced tough new legislation targeting illegal crypto mining activities that rely on stolen electricity. The revisions to the Criminal Code, which include Article 253(2), impose fines and imprisonment for miners using unauthorized power sources. The penalties range from hefty fines to long prison sentences, depending on the scale of the crime. This move aims to curb widespread illegal mining operations and address power shortages that have been affecting the country.
New Law Targets Illegal Crypto Mining Operations
On December 3, Tajikistan’s parliament passed amendments to the Criminal Code, aimed directly at illegal crypto miners. The law targets those who use stolen electricity to power their mining operations, a practice that has been causing significant damage to the national power grid. Under the new law, offenders face a fine between $1,650 and $8,250 or a prison sentence ranging from two to five years.
If the mining operation is deemed to be on an “especially large scale,” the punishment becomes more severe. The prison sentence can extend from five to eight years. This legal change comes in response to a growing problem of electricity theft by crypto miners, particularly in major cities, which has contributed to regional power outages and infrastructure damage.
Illegal Crypto Mining Damaging Tajikistan’s Power Grid
Tajikistan, which relies heavily on hydropower for electricity, has been facing severe power shortages due to illegal crypto mining. The country’s energy grid has been strained, especially during the winter months when power demands peak. Many miners have been illegally tapping into the grid by bypassing meters or using unauthorized connections to mine cryptocurrencies.
According to government reports, illegal mining operations have caused damages amounting to millions of dollars. In 2023 alone, authorities identified nearly $4.26 million in losses, involving almost 4,000 individuals. Local officials have expressed concern over the scale of the damage, highlighting the strain placed on the country’s already limited power resources.
Legislation Aims to Tackle Crime and Avoid Tax Evasion
The primary aim of the new legislation is to prevent illegal activities tied to crypto mining. Beyond power theft, these activities often facilitate crimes such as money laundering and tax evasion. Tajikistan’s government also hopes to curb attempts to circumvent national regulations on virtual assets.
Officials, including Attorney General Khabibullo Vokhidzoda, have stressed the urgency of addressing these issues. Vokhidzoda has pointed out that illegal mining operations not only undermine the nation’s power grid but also contribute to the illegal circulation of virtual assets. By tightening regulations, the government seeks to mitigate these criminal activities and safeguard the country’s financial and energy sectors.
With President Emomali Rahmon expected to sign the bill into law, these changes will come into effect soon. The new measures mark a significant step towards controlling illegal crypto mining in Tajikistan and protecting its power infrastructure from further exploitation.
