Tajikistan Introduces Harsh Penalties for Illegal Crypto Mining
Tajikistan is escalating its fight against unauthorized crypto mining, rolling out criminal penalties, steep fines, and prison sentences for anyone caught operating mining rigs on stolen electricity. The move comes as the country braces for another difficult winter marked by recurring power shortages and widespread strains on the national grid.
Lawmakers approved amendments to the country’s Criminal Code that directly target miners siphoning power without authorization.
Fines and Prison: The New Reality for Illegal Miners
Under the revised code, individuals found powering mining equipment illegally face fines ranging from 15,000 to 37,000 somoni (roughly $1,600-$4,000).
For organized groups, penalties rise sharply to 75,000 somoni (just over $8,000) alongside mandatory prison sentences of two to five years.
Cases deemed “especially large scale” will trigger even harsher punishment, with offenders facing five to eight years in prison. The penalties extend to anyone operating unregistered mining hardware or attempting to bypass electricity meters.
Government Links Mining to National Power Shortages
Presenting the bill to parliament, Prosecutor General Habibullo Vohidzoda stated plainly that illegal crypto farms have caused serious energy deficits across multiple regions. He argued that unauthorized mining has forced authorities to ration electricity and contributed to conditions conducive to other crimes, including money laundering and tax evasion.
Vohidzoda revealed that investigators have already uncovered numerous covert mining operations connected directly to the grid. According to him, illegal mining has caused 32 million somoni (around $3.5 million) in losses to the state and continues to burden an already fragile energy system.
Authorities say some offenders have also been importing mining equipment illegally, compounding the legal violations and bypassing the country’s customs framework.
New Rules Aim to Curb Tax Evasion and Rein in Crypto Activity
Legislator Shukhrat Ganizoda noted that the amendments also aim to stop miners from avoiding taxes and operating outside the formal economy. Once signed into law by President Emomali Rahmon and published in the official gazette, the changes will take full legal effect.
A Regional Problem: Crypto Farms Under Fire Across Central Asia
Tajikistan is the latest Central Asian nation to crack down on mining operations that surged after China’s mining ban in 2021.
Across the region, crypto farms have been blamed for massive energy shortages resulting in government restrictions, price hikes, and outright bans.
Kazakhstan previously imposed strict rules and electricity price increases on miners-though it has recently relaxed some measures. Russia, which officially legalized mining in 2024, still struggles with overloaded grids and has banned mining in more than ten regions since January.
In Kyrgyzstan, authorities shut down all crypto mining operations last month due to soaring winter electricity demand.
Tajikistan’s new penalties place it among the most aggressive countries in the region in targeting illegal mining, signaling that the era of unregulated, power-hungry operations is rapidly closing.
