Illegal Crypto Mining Causes Malaysia to Lose Over 100 Million USD in Electricity, Industry Report Calls for Clear Legal Framework.
Illegal cryptocurrency mining is rapidly spreading in Malaysia, causing serious financial damage and hindering the country from fully exploiting the potential of a billion-dollar industry. According to a recent report by the Access Blockchain Malaysia Association, inconsistent policies and an incomplete legal framework are the main reasons for this situation.
Specifically, the report states that the National Power Corporation Tenaga Nasional Berhad (TNB) lost approximately 441.6 million ringgit (equivalent to 104.2 million USD) from 2020 to September 2024 due to electricity theft, mostly related to illegal Bitcoin mining activities.
Source: Access Blockchain Association
This figure follows a loss of 2.3 billion ringgit from 2018 to 2021. Not only causing financial damage, this issue also causes Malaysia to miss the opportunity to convert stolen energy sources into legal revenue for TNB and create tax income for the government.
Paradoxically, while illegal crypto mining is widespread, many legal mining companies operate in a lack of transparency and are hesitant to be public due to concerns about cyber attacks, equipment theft, and especially unexpected policy changes.
The report highlights the significant demand from serious investors who are waiting for a clear and stable legal environment. Some companies like Hatten Land have publicly announced plans to deploy thousands of Mining Rigs, demonstrating the enormous commercial potential with an appropriate legal framework.
With advantages in robust internet infrastructure and abundant hydroelectric power, Malaysia could easily become a top global crypto mining center. Currently, Malaysia ranks 7th to 8th globally in hashrate, contributing about 2.5%-3% of total Bitcoin mining capacity. However, this potential remains limited because the Malaysian Securities Commission, which oversees exchanges, has not yet developed a specific legal framework for cryptocurrency mining.
The report proposed specific policy recommendations, including establishing specialized licenses for mining activities, introducing "green" electricity rates to attract sustainable investment, and developing a mining model compliant with Islamic financial standards (Shariah-compliant). These are considered essential steps for Malaysia to transform the current challenge into an opportunity to develop a legal, stable, and sustainable revenue stream.
