Malaysian Authorities Crack Down on Bitcoin Mining Electricity Theft
Bitcoin and Crypto Mining Operations Blamed for Massive Electricity Theft in Malaysia
In a shocking revelation, a report by Malaysian news outlet MalayMail has uncovered that Bitcoin and crypto mining operations were primarily responsible for the significant electricity theft in the country between 2018 and 2023.
Despite the crackdown on these illegal activities, crypto mining and general crypto services are not illegal in Malaysia.
Bitcoin Mining Using Stolen Energy
According to Akmal Nasrullah Mohd Nasir, the Deputy Minister for the Energy Transition and Water Transformation docket in Malaysia, the country suffered a loss of around RM3.4 billion ($723 million) due to unauthorized electricity supplies for crypto mining during the mentioned period.
During an event where over 2,000 pieces of equipment seized in an October 2022 crackdown were disposed of, Akmal Nasir emphasized the detrimental impact of electricity theft on the country. He highlighted that energy supply companies have various methods to detect unusual energy consumption in an area, despite the absence of meters on the premises of crypto miners.
The Deputy Minister also mentioned that the ministry is focused on combating electricity theft while promoting the production of green, clean energy in the country.
Crypto and Mining Not Illegal
Although crypto and mining activities are not illegal in Malaysia, the act of stealing electricity to mine cryptocurrency is considered illegal. A paper by Malaysia’s Universiti Teknologi MARA suggested that the government should establish a proper framework for miners to comply with to prevent electricity theft.
Furthermore, general crypto service providers like Huobi Global have faced scrutiny from Malaysian authorities, with the exchange being forced to close its services in the country for failing to register as required.
The disposal of the seized equipment and the ongoing efforts to combat electricity theft highlight the challenges faced by Malaysia in regulating the crypto industry while ensuring the integrity of its energy supply.
