Massive Electricity Theft Linked to Bitcoin Mining in Malaysia
In Malaysia, a recent report by MalayMail has revealed that Bitcoin and crypto mining operations have been identified as the primary culprits behind a significant case of electricity theft in the country between 2018 and 2023.
Bitcoin Mining Using Unauthorized Energy Sources
The Deputy Minister for the Energy Transition and Water Transformation docket in Malaysia, Akmal Nasrullah Mohd Nasir, highlighted that the country suffered a loss of approximately RM3.4 billion ($723 million) during the mentioned period due to the illegal use of electricity for crypto mining activities.
- Akmal Nasir explained that in an event where over 2,000 seized pieces of mining equipment were disposed of, the total value of the equipment reached around $467,000. The lack of ST safety certificates for this equipment was emphasized during the event.
- The presence of key figures like T Area Enforcement and Operations Director Ismail Zaili Yusop and ST Chief Operating Officer Dr V Sanjayan at the event was also noted.
According to Akmal Nasir, the theft of electricity by crypto miners is not only detrimental to Tenaga Nasional Berhad (TNB) but also to the citizens and the nation as a whole. He emphasized the importance of detecting abnormal energy consumption in different areas to tackle this issue effectively.
Following the completion of court processes and compound procedures, the deputy public prosecutor ordered the disposal of the confiscated equipment in accordance with relevant legal codes.
Legality of Crypto and Mining Operations in Malaysia
While crackdowns have been initiated since August 2019, it is essential to note that crypto and mining activities are not prohibited in Malaysia. However, the unlawful use of electricity for mining purposes remains a punishable offense.
- A research paper by Malaysia’s Universiti Teknologi MARA suggested the implementation of a comprehensive regulatory framework to address electricity theft issues associated with mining activities.
- Not limited to mining, general crypto service providers like certain exchanges have also faced regulatory actions in Malaysia. For example, Huobi Global had to cease operations in the country due to non-compliance with registration requirements.
Prioritizing Green Energy and Anti-Theft Initiatives
Akmal Nasir emphasized the government’s commitment to combatting electricity theft while promoting the development of sustainable energy sources.
- He highlighted the irony of a country aiming to transition to cleaner energy sources experiencing significant electricity theft involving cryptocurrency mining operations.
- During the disposal process of the confiscated equipment, strict adherence to environmental regulations from 1974 and 2005 was enforced to ensure proper waste management.
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