Tajikistan, the Central Asian country, is taking a hard line on cryptocurrency crypto mining, with its parliament recently passing a new bill.
The bill makes the illegal use of electricity to mine virtual assets a criminal offense. Individuals caught stealing power for crypto mining face fines of 15,000 to 37,000 somoni, or about 11,000 to 27,000 yuan. For organized operations, fines can reach 75,000 somoni, equivalent to 55,000 yuan, along with two to five years in prison.
If the theft involves an especially large amount of electricity, the sentence rises directly to five to eight years. The move is not empty posturing: the country’s prosecutor general, Vohidzoda, said illegal mining sites have long been energy thieves.
Tajikistan already faces tight energy supplies in winter, and power shortages in many cities have worsened because of electricity theft for crypto mining, forcing authorities to impose power-use restrictions. The problem does not stop there. These unregulated mining activities have caused direct losses of 32 million somoni to the state, or roughly 23.5 million yuan.
They have also become a breeding ground for money laundering and the smuggling of mining equipment. Some mine operators simply bypass the rules and bring equipment in from overseas, with no oversight at all.
Another key part of the bill is its effort to close tax loopholes. Lawmaker Ganizoda said the amendments are aimed specifically at tax evasion in the crypto mining sector, ensuring that digital asset mining is no longer a blind spot for tax collection.
For now, the bill only needs President Emomali Rahmon’s signature and official publication before it takes effect.
Tajikistan is a heavily energy-dependent country, and winter shortages are hardly new. Cryptocurrency crypto mining consumes large amounts of electricity, putting it in sharp conflict with the limited energy supply of a small country.
When crypto mining shifts from a gray-area activity that can generate some income into a black-market business that eats into national energy security and fiscal revenue, tough regulation becomes the only option.
Behind the crackdown is a question the global crypto industry is still trying to answer: when virtual asset mining clashes with real-world energy security and financial order, where should regulators draw the line?
Tajikistan’s eight-year sentence may be a last-resort measure by a small country under resource pressure.
But it is also a warning to every energy-dependent country: experimentation with crypto technology cannot come at the expense of the public interest. The energy consumption and compliance costs of crypto mining will eventually have to be fully accounted for.
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