Reasons Behind Tajikistan’s Crackdown on Cryptocurrency Mining and Electricity Theft

Key takeaways

• Tajikistan has made it illegal to mine cryptocurrencies using stolen electricity, imposing fines up to $8,250 and prison terms of up to eight years.

• This legislation follows an energy crisis marked by extensive power shortages and significant losses attributed to unauthorized mining.

• The country is part of a global trend where governments from various regions are tightening regulations on illicit crypto mining to safeguard national energy resources.

• There is a noticeable shift in crypto mining practices, with some miners exploring more sustainable energy options and efficient technologies.

On December 3, 2025, Tajikistan’s parliament officially approved revisions to its criminal code, establishing it as a crime to use 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 law, individuals caught mining digital currencies with stolen or unaccounted electricity face substantial penalties. The base offense incurs fines between approximately $1,650 and $4,070.

If committed by a group, fines escalate to $4,125-$8,250, along with two to five years of imprisonment. In cases of large-scale or organized operations, offenders may face sentences of up to eight years.

The bill was introduced in parliament by Attorney General Habibullo Vohidzoda, who indicated that unregulated mining had already led to regional power outages, significant financial losses, and an increase in associated crimes. He informed lawmakers that illegal mining losses had reached about $3.52 million and that multiple criminal investigations are ongoing.

Power shortages in Tajikistan and mounting pressure

Tajikistan’s decision occurs during one of the most critical energy crises the nation has recently experienced.

• The country is heavily dependent on hydropower, and low water levels in reservoirs have compelled authorities to ration electricity during winter months. Many citizens are receiving only two to four hours of power daily.

• Officials contend that unlicensed mining operations are exacerbating these issues, often connecting to the national grid illegally or circumventing meters to evade payment. This scenario results in major financial losses along with serious damage to power infrastructure.

Member of Parliament Shukhrat Ganizoda informed his colleagues that a typical application-specific integrated circuit (ASIC) mining device consumes around 3.5 kilowatts (kW) of power, with advanced models consuming up to 6 kW. He indicated that large mining facilities operating thousands of such machines impose an immense burden on the grid. Ganizoda also noted that offenders frequently manipulate wiring and meters to reduce costs and maximize returns.

He further pointed out that illegal mining can lead to tax evasion, untraceable financial activities, and efforts to hide or launder illicit gains. He emphasized that the new law is intended to protect the nation’s economy and energy security.

The law will take effect once signed by President Emomali Rahmon and published in state media.

Did you know? Under Tajikistan’s new Article 253(2), mining cryptocurrency using stolen power can lead to a prison sentence of up to eight years.

A global wave of crypto mining crackdowns

Tajikistan’s initiative is part of an overarching international trend. Worldwide, governments are reevaluating their positions on cryptocurrency mining as energy costs rise and power grids become more strained:

• In Malaysia, authorities have found thousands of unauthorized mining locations that drained electricity worth over $1 billion in recent years.

• In Kuwait, a national operation was launched in 2025 to dismantle unauthorized mining facilities after energy shortages worsened. Reports indicate that electricity usage dropped by over 50% in one region following the crackdown.

Even in nations that once embraced mining, like China and Kazakhstan, energy shortages and increasing environmental concerns have led to stricter regulations and, in some instances, outright bans. Many of these governments are now treating unauthorized mining as theft or economic sabotage rather than a mere administrative infraction.

The common theme is evident: Where electricity is inexpensive, subsidized, or inadequately monitored, crypto mining flourishes. When energy becomes scarce, regulators intervene to protect the grid and ensure that the public can access necessary power.

Why Tajikistan’s mining crackdown matters for energy policy

Tajikistan’s new legislation emphasizes how cryptocurrency mining has evolved from a financial curiosity to a critical issue of national infrastructure and energy policy. Mining Bitcoin (BTC) and other proof-of-work cryptocurrencies requires considerable electricity, and when conducted illegally, it creates a dual burden.

Firstly, it diverts limited energy resources that should be allocated to households and industries. Secondly, it denies the state potential revenues and increases maintenance costs due to infrastructure damage. For countries with vulnerable power systems, this combination can be particularly challenging to manage.

In Tajikistan, authorities hope that criminalizing unauthorized mining will deter offenders and aid in stabilizing the power grid. The law also conveys to investors and businesses that the government is committed to regulating digital asset activities.

This action coincides with the country tightening penalties for other types of power theft and nonpayment, which can already incur fines up to $9,900 or prison sentences of up to eight years.

How miners and the crypto industry may respond

The stringency of regulations in Tajikistan and elsewhere is likely to expedite what analysts term “mining migration.” As one nation enforces stricter penalties, miners frequently relocate to regions with more lenient laws or cheaper electricity.

This trend has occurred previously. Following China’s ban on crypto mining in 2021, much of the industry migrated to countries like Kazakhstan, the United States, and Russia. However, as some of these areas faced grid strains, many have since reassessed their policies.

Experts argue that the future of mining will increasingly hinge on access to renewable or surplus energy. Operations utilizing sustainable power are less likely to attract regulatory scrutiny. Additionally, some blockchain networks are transitioning toward proof-of-stake models, which generally require significantly less energy.

For Tajikistan, the expectation is that the new penalties will dissuade illegal mining entirely rather than merely pushing it underground.

Energy security is now crypto policy

Tajikistan’s decision reinforces an emerging understanding that crypto mining encompasses more than just digital finance. It intersects with energy security, infrastructure resilience, and environmental policy.

By criminalizing illegal mining, the government intends to deliver a clear message that energy misuse will not be accepted. In a nation where electricity shortages significantly impact daily life, the measure is as much about equity as it is about technology.

For miners globally, Tajikistan’s case serves as a reminder that inexpensive or free electricity carries inherent costs. As more governments regard energy theft as a serious offense, the global landscape of crypto mining will continue to shift toward regions that reconcile innovation with accountability.

In Tajikistan, this balance now signifies one paramount truth: illegal mining involving stolen or unregulated electricity can lead to criminal sanctions, including imprisonment.