Cryptocurrency mining has become a lucrative industry, but it has also led to some concerning incidents around the world. In Malaysia, crypto miners have been found to have stolen a staggering amount of electricity, costing the country millions.
Theft of Electricity by Crypto Miners
According to Akmal Nasrullah Mohd Nasir, the deputy energy transition and water transformation minister of Malaysia, crypto miners in the country have stolen at least RM3.4 billion ($722 million) worth of power between 2018 and 2023.
“The theft of electricity by those who mine cryptocurrency occurs because they believe this activity cannot be detected due to the absence of meters on their premises,” the official said. “However, energy supply companies have various methods to detect unusual energy consumption in an area.”
The Malaysian government has taken action against these illegal mining operations, seizing 2,022 items worth RM2.2 million, including bitcoin mining rigs, in October 2022.
Cracking Down on Illegal Crypto Mining
The deputy minister emphasized that prioritizing the combat against electricity theft is a key focus for the energy ministry, along with boosting the generation of green and renewable energy.
Crypto Mining Shifting to Southeast Asia
Crypto mining operations have been increasingly moving from China, which banned all crypto mining activities in 2021, to the U.S. and other places, including Malaysia, Indonesia, Laos, and Thailand. These Southeast Asian nations are attractive to miners due to their competitive electricity prices, skilled labor, and existing infrastructure.
Malaysia’s Position in Bitcoin Mining
According to Cambridge University data, in January 2022, the U.S. accounted for 37.8% of the global hashrate share, making it the world’s largest bitcoin producer. Malaysia controlled about 2.5% of the global share, ranking it among the top 10 nations for bitcoin production.
The theft of electricity by crypto miners in Malaysia highlights the need for stricter regulation and enforcement in the industry. As the country continues to crack down on these illegal activities, it will be interesting to see how the crypto-mining landscape evolves in the region.
