Illegal Crypto Mining Costs Malaysia $723M in Power Theft
Illegal crypto miners in Malaysia have stolen $723 million worth of electricity since 2018. Officials are cracking down, seizing and destroying over 2,000 machines. This ongoing issue affects the national power grid and local communities, prompting stricter enforcement and efforts to boost renewable energy.
Illegal crypto miners in Malaysia have stolen $723 million worth of electricity between 2018 and 2023 according to Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir. During a recent event, Nasir disclosed this staggering figure while overseeing the disposal of 2,022 seized items. These items were worth approximately $4,67,000. The items included Bitcoin mining machines and electrical equipment, as reported by Malay Mail.
“They believe this activity cannot be detected due to the absence of meters on their premises. Energy supply companies employ various methods to detect unusual energy consumption. This led to the seizure of over 2,000 items in an operation in October 2022” - Akmal Nasrullah Mohd Nasir
While mining cryptocurrency itself is not illegal in Malaysia stealing electricity for this purpose is a criminal offense. This distinction was highlighted by Malaysia’s Universiti Teknologi MARA in December 2022. Since August 2019, Malaysian officials have been actively seizing cryptocurrency mining equipment. Nasir noted that these procedures are conducted in accordance with the country’s criminal procedure laws. Some machines are disposed of by crushing them with a steamroller.
In addition to combating illegal mining, Nasir's ministry is focused on increasing Malaysia's renewable energy sources. The crackdown extends to unregistered exchanges. The Securities Commission Malaysia ordered Huobi Global to cease operations in May 2023. This was for failing to register its trading services. Currently, only HATA Digital Luno, SINEGY MX Global, Tokenize Technology and Torum International are registered cryptocurrency trading platforms in Malaysia.
Malaysia’s ongoing efforts to tackle illegal crypto mining and unregistered exchanges reflect a broader commitment to securing the nation’s energy resources. Their goal is to ensure the legality and safety of its cryptocurrency market.
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