Tajikistan Introduces Heavy Penalties for Bitcoin Mining Using Stolen Electricity

Tajikistan has recently enacted a new law that imposes heavy fines and prison sentences of up to eight years for individuals who engage in Bitcoin mining using illegally sourced electricity. This move comes in response to increasing energy shortages experienced during the winter months.

Key Takeaways

Tajikistan's parliament has approved legislation with strict penalties for illegal Bitcoin mining activities.
Offenders may face fines of 15,000 to 37,000 somoni, and organized groups could incur fines up to 75,000 somoni along with prison sentences.
Severe cases involving significant electricity theft can result in sentences from five to eight years in prison.
Authorities highlight that illegal mining operations have contributed to energy shortages and various crimes, including money laundering.

Tajikistan criminalizes Bitcoin mining with stolen electricity.

Tajikistan's Crackdown on Cryptocurrency Mining

The recent legislation approved by Tajikistan's bicameral parliament focuses on imposing criminal and financial penalties for unauthorized use of electricity in the cryptocurrency mining sector. A specific article was added to the country’s Criminal Code addressing the “illegal use of electricity for the production of virtual assets.”

Under these new regulations, individuals caught using mining equipment unlawfully could face fines between 15,000 and 37,000 somoni. Those operating as part of organized groups could be penalized with fines reaching 75,000 somoni and prison terms of two to five years. In cases of extensive electricity theft for mining, individuals could face even greater consequences, with prison sentences ranging from five to eight years.

Tajikistan’s Prosecutor General, Habibullo Vohidzoda, reported to parliament that the theft of electricity for mining purposes has resulted in shortages across various cities and regions in the country. This situation prompted the government to enforce restrictions on electricity usage, which have led to an increase in criminal activity, as noted by Vohidzoda.

He stated that the illicit circulation of virtual assets leads to several crimes, including electricity theft, damages to the state, money laundering, and more. Vohidzoda disclosed that many illegal mining farms have been discovered connected to the power grid without authorization, with ongoing investigations into these activities.

Official estimates reveal that illegal mining in Tajikistan has incurred around 32 million somoni in losses to the state. He also emphasized that some individuals involved in these mining operations have imported equipment from abroad, contravening national laws.

Tajik lawmaker Shukhrat Ganizoda explained that the amendments to the law are also designed to curb tax evasion among those engaged in digital asset mining. Once President Emomali Rahmon signs the approved bill and it is published in the official gazette, the changes will come into effect.

The Central Asian country has been facing significant energy shortages during the winter months, which has increased the urgency to address the issue of illegal cryptocurrency mining.