Thursday, January 15, 2026

Tajikistan criminalizes electricity theft for cryptocurrency mining with fines and prison terms

Photorealistic crypto mining rigs plugged into a power meter with a faint grid glow and regulatory stamp.

Tajikistan criminalizes electricity theft for cryptocurrency mining with fines and prison terms

Tajikistan has moved to criminalize the unauthorized use of electricity for cryptocurrency production under amendments introducing penalties in a new Article 253(2) of the Criminal Code. The measure targets crypto miners using stolen power amid an acute hydropower-driven energy shortage that has already produced millions in grid damages. Full implementation requires presidential assent before the law takes effect.

Tajikistan’s legal response to crypto miners using stolen power

Parliament approved the amendment on December 3, 2025, creating criminal liability for those who power mining hardware with stolen electricity. Penalties range from fines of 15,000 to 75,000 somoni (about $1,650 to $8,250) to custodial sentences of two to five years for ordinary cases, while organized or especially large-scale operations can face five to eight years. Authorities intensified enforcement earlier in 2025, documenting criminal cases and losses: in the first half of 2025 illegal mining caused an estimated $3.52 million in damages, and by August 2025 a further $4.26 million had been attributed across 190 criminal cases implicating nearly 4,000 individuals, for a combined reported toll of approximately $7.78 million. Full implementation requires presidential assent to activate the new criminal provisions under Article 253(2).

Energy pressures, migration of miners and wider risks

Tajikistan’s grid is heavily reliant on hydropower, with roughly 95% of national electricity production coming from dams. Low reservoir levels and reduced river flows have produced severe winter shortages, with some areas reportedly receiving two to four hours of power per day. The perceived availability of cheap electricity after China’s 2021 mining ban drew a migration of miners—many from Russia—who brought high-consumption devices such as ASIC mining rigs consuming in the order of 1,200–2,000 watts and, for more powerful models, figures described as 3.5–6 kWh in operational consumption estimates. (ASICs are specialized mining rigs optimized for a single hashing function used in many proof-of-work cryptocurrencies.)

Attorney General Khabibullo Vokhidzoda framed the problem as broader than energy theft: “The illegal circulation of virtual assets contributes to a number of crimes such as electricity theft, damage to state infrastructure and the laundering of criminal proceeds,” he said, linking illicit mining to outages, money-laundering risks and tax evasion. The amendments also address unauthorized electronic encryption and measures intended to deter circumvention of commodity-tracking systems. From a macro-financial perspective, the documented $7.78 million in direct damages represents a significant fiscal and infrastructure burden relative to Tajikistan’s economic scale, even as larger countries report higher absolute losses, including Malaysia’s reported $1.1 billion and Russia’s roughly $14 million from illicit mining activity. For policy-makers and institutional actors assessing crypto-related tail risks, the case underscores how energy constraints can create a feedback loop in which unregulated mining increases grid stress, prompting stricter enforcement and legal remedies that affect operational certainty for on‑ramps and local miners.

Tajikistan’s criminalization of electricity theft for cryptocurrency mining signals a decisive attempt to protect a strained hydropower system and curb ancillary criminal activity. The near-term benchmark to watch is presidential assent and the launch of enforcement operations, which will determine how rapidly the legal provisions translate into deterrence and reduced grid damage. Next verified milestone: presidential assent and the authorities’ initial enforcement reports.

Shatoshi Pick
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