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Crypto Prune > Mining > Tajikistan struggles with winter power outages, virtual currency miners at risk of prison sentences
Mining

Tajikistan struggles with winter power outages, virtual currency miners at risk of prison sentences

2 months ago 4 Min Read

Tajikistan’s parliament amended its criminal code on December 3 to specifically criminalize electricity theft for the production of virtual assets. Article 253 of this law replaces the previous administrative fines for illegal grid connections with criminal charges. Enforcement agencies can now immediately prosecute miners, rather than issuing warnings.

Lawmakers framed the reforms as a response to increasing pressure on energy infrastructure and mounting financial losses.

Legislative hammer: Article 253

On December 3, Tajikistan’s parliament approved an amendment criminalizing the theft of electricity for cryptocurrency mining. This change adds a specific offense targeting the illegal use of energy for the production of virtual assets. Enforcement agencies therefore now have clearer legal tools to pursue criminals.

Related: Tajikistan’s crackdown on illegal miners causes $3.5 million in power grid losses

Fines start at approximately $1,650 for each individual violation and increase depending on the severity of the violation. Additionally, coordinated actions by multiple offenders will result in harsher penalties. Organized activity involving grand theft can lead to long prison sentences. Lawmakers argued that clear penalties would create a deterrent effect where no administrative fines have previously been imposed.

Authorities cite infrastructure and crime risks

Government officials told lawmakers that illegal mining is already straining the local power grid. As a result, some regions faced power outages and equipment damage related to unmetered consumption. Authorities reported cumulative losses from these activities amounting to millions of dollars.

In addition, investigators discovered cases related to smuggled mining equipment and illegal power grid connections. Lawmakers also linked illegal mining to tax evasion and financial crimes.

See also  Backpack Exchange launches daily proof of bookings verified by Ottersec

The new rules are therefore aimed at protecting the state’s revenue as well as its infrastructure. Energy experts have warned that high-powered mining equipment can consume as much electricity as a small factory. The impact increases on larger farms and the risk increases during peak demand months.

lack of energy in winter

Tajikistan experiences shortages every fall and winter, adding to the urgency of pushing for the legislation. This year, some areas have had electricity for only a few hours each day. However, illegal mining continued to provide electricity 24 hours a day.

Officials believe enforcement will reduce pressure on the power grid and stabilize supply. Additionally, the country already has strict penalties for power theft unrelated to mining.

The new offenses complement these rules by targeting rapidly increasing sources of abuse. This law will take effect after approval and promulgation by the President. Importantly, officials hope the changes will signal zero tolerance for misuse of energy as demand increases.

Related: Bitcoin miner who stole US$1 billion worth of electricity from Malaysian power grid faces crackdown

Disclaimer: The information contained in this article is for informational and educational purposes only. This article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the use of the content, products, or services mentioned. We encourage our readers to do their due diligence before taking any action related to our company.

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