Since 2018, illegal crypto miners in Malaysia have stolen approximately $723 million worth of electricity, according to reports from multiple sources.
This massive theft highlights significant vulnerabilities in Malaysia’s energy infrastructure and the ongoing challenges of regulating the burgeoning crypto mining sector.
Extent of Electricity Theft
From 2018 to 2023, illegal crypto miners in Malaysia have stolen approximately $723 million worth of electricity. The theft primarily involves unregistered miners bypassing electric meters and drawing power directly from power lines. This has led to the detection of unusual consumption patterns by energy companies, resulting in numerous crackdowns.
For instance, in October 2022, authorities seized over 2,000 items related to illegal mining operations, including Bitcoin mining machines and electrical equipment valued at around $467,000.
According to Akmal Nasrullah Mohd Nasir, the Deputy Minister of Energy Transition and Water Transformation, these unauthorized operations have severely impacted the state-controlled power company, Tenaga Nasional Berhad (TNB), and local communities. He stated on his twitter –
“The government is excited to implement the energy transition agenda because it wants to add new energy sources. But at the same time electricity theft reaches hundreds of millions, there are years reaching billions of ringgit a year in our country, Irony indeed.”
– Akmal Nasir (Malaysian Deputy Minister, Energy Transition and Water Transformation
This unlawful practice has severely impacted Tenaga Nasional Berhad, the state-controlled power company, and local communities.
Legal Context
While cryptocurrency mining itself is not illegal in Malaysia, stealing electricity for this purpose is a punishable offense. Malaysia’s Universiti Teknologi MARA clarified this distinction in December 2022, underscoring the legal repercussions for offenders.
In addition, the Malaysian Securities Commission has been actively regulating the industry, shutting down unregistered exchanges to ensure compliance and protect consumers.
Notably, the cryptocurrency exchange Huobi Global was ordered to cease operations in May 2023 for failing to register trading services.
These crackdowns highlight the Malaysian government’s commitment to curbing illegal mining activities and regulating the cryptocurrency industry.
Registered cryptocurrency trading platforms in Malaysia now include HATA Digital, Luno, SINEGY, MX Global, Tokenize Technology, and Torum International.
This regulation aims to create a safer and more transparent market for both consumers and legitimate businesses.
Government Response and Future Measures
In response to these findings, the Malaysian government is likely to implement stricter regulatory measures and enhance monitoring systems to detect and prevent illegal mining activities.
Public Awareness Campaigns are also crucial to educate the populace about the legal and environmental consequences of supporting or engaging in illegal crypto mining.
Therefore, the discovery of $723 million worth of electricity theft by illegal crypto miners in Malaysia underscores the need for robust regulatory frameworks and vigilant enforcement.
As the crypto industry continues to grow, it is imperative for governments worldwide to develop strategies that balance innovation with the Protection of Public Resources and environmental sustainability.
Author : Mr. OxBull
Article Published : 13th July, 2024