Key takeaways
Tajikistan has outlawed the usage of stolen electricity for cryptocurrency mining, imposing fines up to $8,250 and prison terms of up to eight years.
This action follows a severe energy crisis marked by widespread power shortages and illegal mining leading to millions in losses and infrastructure damage.
The country is part of a wider trend as governments across Asia and the Middle East ramp up efforts against unauthorized crypto mining to safeguard national power resources.
The crypto mining landscape may be evolving, with some miners pivoting towards renewable energy solutions and more efficient technologies.
On Dec. 3, 2025, Tajikistan’s parliament officially sanctioned changes to its criminal code, making it illegal to utilize electricity unlawfully for cryptocurrency mining. The new regulation introduces Article 253(2), titled “Illegal use of electricity for the production of virtual assets.”
Under this legislation, anyone engaged in mining digital assets with stolen or unmetered electricity faces severe penalties. Basic offenses incur fines between approximately $1,650 and $4,070.
Should the act be perpetrated by a coordinated group, penalties escalate to $4,125-$8,250, or two to five years in jail. Offenders involved in extensive or organized operations could receive prison sentences of up to eight years.
The bill was introduced to parliament by Attorney General Habibullo Vohidzoda, who cautioned that unregulated mining had already led to regional power outages, millions lost, and an increase in related crimes. He informed lawmakers that damages from illegal mining hit around $3.52 million and several criminal cases are underway.
Power shortages in Tajikistan and mounting pressure
Tajikistan’s decision comes during one of the most critical energy crises the country has encountered in recent history.
Heavily dependent on hydropower, the nation has had to ration electricity during winter due to low water levels in reservoirs. In many regions, citizens have access to just two to four hours of power each day.
Authorities claim unlicensed mining farms exacerbate the problem. These operations often connect to the national grid illegally or bypass meters to evade power payments, causing not only significant financial losses but also serious harm to power infrastructure.
Member of Parliament Shukhrat Ganizoda pointed out that a standard application-specific integrated circuits (ASIC) mining device consumes about 3.5 kilowatts (kW) of electricity, with more advanced models consuming up to 6 kW. He remarked that large mining operations utilizing thousands of these devices put immense pressure on the grid. Ganizoda added that budget-cutting perpetrators often tamper with wiring and meters.
He stressed that illegal mining contributes to tax evasion, untraceable financial transactions, and efforts to conceal or launder illicit gains. The new law is intended to safeguard both the national economy and energy security.
Once endorsed by President Emomali Rahmon and published in state media, the law will come into force.
Did you know? According to Tajikistan’s new Article 253(2), using stolen power to mine cryptocurrency can lead to prison sentences of up to eight years.
A global wave of crypto mining crackdowns
Tajikistan’s actions reflect a growing global trend. Across the globe, governments are reassessing their approaches to cryptocurrency mining amid rising energy costs and strained grids:
In Malaysia, authorities have found thousands of illegal mining locations that consumed power valued over $1 billion in recent years.
In Kuwait, officials initiated a nationwide campaign in 2025 to dismantle unauthorized mining farms following worsening power shortages. Reports indicate that electricity use dropped by more than 50% in a region after the crackdown.
Even in places that once welcomed mining, like China and Kazakhstan, energy shortages and escalating environmental worries have led to more stringent regulations and, in certain instances, outright bans. Many of these governments now perceive unauthorized mining as theft or economic sabotage instead of just administrative infractions.
The common theme is evident: where electricity is inexpensive, subsidized, or poorly managed, crypto mining tends to flourish. As energy becomes scarce, regulators step in to protect the grid and ensure the public can access essential electrical resources.
Why Tajikistan’s mining crackdown matters for energy policy
Tajikistan’s recent regulations underscore how cryptocurrency mining has evolved from a financial novelty to a critical issue of national infrastructure and energy policy. Mining Bitcoin (BTC) and other proof-of-work cryptocurrencies demands substantial electricity, and illegal operations create a dual burden.
First, it depletes limited energy resources that should be allocated for households and businesses. Second, it denies the state revenue and increases maintenance costs due to infrastructure damage. For nations with fragile power systems, this combination can prove extremely challenging.
In Tajikistan, officials are optimistic that criminalizing unauthorized mining will dissuade offenders and help stabilize the power grid. The law also conveys to investors and businesses that the government is committed to regulating digital asset activities.
This initiative coincides with the country amplifying penalties for other forms of power theft and non-payment. Such offenses already incur fines of up to $9,900 or prison sentences of up to eight years.
How miners and the crypto industry may respond
The tightening regulations in Tajikistan and other locales are expected to accelerate what analysts refer to as “mining migration.” As nations impose stricter penalties, miners often relocate to areas with more lenient regulations or cheaper electricity.
This trend has been observed previously. Post-China’s ban on crypto mining in 2021, much of the industry shifted to countries like Kazakhstan, the United States, and Russia. However, as some of those areas faced grid stress, many have reassessed their positions.
Experts indicate that the mining sector’s future will increasingly hinge on access to renewable or excess energy. Operations powered by sustainable energy are unlikely to attract regulatory scrutiny. Additionally, some blockchain networks are transitioning towards proof-of-stake systems, which generally require significantly less electricity.
For Tajikistan, the expectation is that the new penalties will dissuade illegal mining entirely rather than merely pushing it further underground.
Energy security is now crypto policy
Tajikistan’s decision signifies an increasing understanding that crypto mining transcends digital finance. It bridges energy security, infrastructure robustness, and environmental policy.
By criminalizing illegal mining, the government intends to convey a clear message that energy misuse is unacceptable. In a nation where electricity shortages regularly disrupt daily life, this policy is as much about equity as it is about technology.
For miners globally, Tajikistan’s example serves as a reminder that inexpensive or free electricity comes with consequences. As more nations classify energy theft as a serious crime, the global landscape of crypto mining will continually shift towards regions that can harmonize innovation with accountability.
In Tajikistan, that equilibrium now signifies one critical truth: mining with stolen or unmetered electricity can incur severe criminal penalties, including prison time.
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