Tajikistan Enacts New Regulations on Bitcoin Mining
In a significant move to address rising energy shortages exacerbated by illegal activities, Tajikistan’s parliament has recently enacted new regulations targeting bitcoin miners who utilize stolen electricity from the national grid. This legislation introduces harsh penalties, which can reach up to eight years in prison for offenders caught mining cryptocurrencies without proper authorization. The amendments not only establish financial fines but also modify the nation’s criminal code to explicitly criminalize the unauthorized use of electrical power in the production of digital assets.
Penalties for Unauthorized Mining
The newly established penalties stipulate that individuals found operating mining operations in violation of the law could face fines between 15,000 and 37,000 somoni. More seriously, organized groups engaging in such illegal practices could incur fines as high as 75,000 somoni, with prison sentences ranging from two to five years. Particularly egregious cases of electricity theft attributed to mining activities may result in imprisonment for five to eight years.
Government’s Response to Energy Theft
Tajikistan’s Prosecutor General, Habibullo Vohidzoda, highlighted the pressing issue of energy theft linked to the operations of mining farms, which has led to significant shortages of electricity across various regions, prompting the government to tighten control on electricity supply. He articulated that this illegitimate mining not only drains energy resources but also correlates with other criminal activities, including money laundering and infrastructure damage.
Citing specific instances, Vohidzoda mentioned that numerous mining facilities have been found illicitly tapping into the power grid, sparking investigations into their operations. Official estimates suggest that these unauthorized activities have resulted in a considerable financial impact on the state, tallying up to roughly 32 million somoni in losses.
Legislative Intent and Future Steps
In response to these challenges, lawmaker Shukhrat Ganizoda emphasized that the new legislation aims to curtail the potential for tax evasion among those involved in digital asset mining and will come into effect following the signature of President Emomali Rahmon and subsequent publication in the official state journal. Amidst persistent energy issues during the winter months, these regulatory changes reflect the government’s commitment to tackling the challenges posed by illegal mining practices.
