Malaysia is struggling to unlock the full economic potential of cryptocurrency mining due to widespread illegal activities and regulatory shortcomings, according to a new report by the Access Blockchain Association of Malaysia.
The report highlights rampant electricity theft by unauthorized crypto miners as a major issue. These illegal operations, often hidden in residential or industrial areas, consume vast amounts of electricity without paying for it, straining the national grid and causing substantial financial losses.
Industry Body Flags Policy Gaps and Legal Uncertainty in Malaysia’s Crypto Mining Sector
The industry body also pointed to inconsistent government policies and a lack of clear legal guidelines surrounding crypto mining.
These uncertainties have discouraged legitimate businesses from investing in the sector, even though Malaysia’s relatively low energy costs could make it a competitive mining hub.
The report urges policymakers to create a transparent, stable regulatory environment to distinguish legal miners from bad actors and attract institutional investment.
Without clearer laws and coordinated enforcement, illegal mining continues to thrive in the shadows, while Malaysia misses out on tax revenues, job creation, and broader economic benefits.
The association calls for collaborative efforts between regulators, utility companies, and industry stakeholders to address these challenges and turn crypto mining into a legitimate contributor to the Malaysian economy.
Also Read: Malaysia Sees 300% Spike In Electricity Thefts Fueled By Illegal Crypto Mining
TNB Faces Major Losses from Electricity Theft Tied to Illegal Bitcoin Mining
Malaysia’s national power utility, Tenaga Nasional Berhad (TNB), has suffered massive financial losses due to electricity theft—primarily linked to illegal Bitcoin mining operations.
Between 2020 and September 2024, TNB reported losses totaling 441.6 million Malaysian ringgits (approximately $104.2 million).
These figures add to previous losses of 2.3 billion ringgits ($542 million) from 2018 to 2021, painting a troubling picture of unchecked illegal crypto mining in the country.
According to a report by the Access Blockchain Association of Malaysia, most of these unauthorized operations siphon electricity to run energy-intensive mining rigs without paying, often bypassing meters or tampering with infrastructure.
This not only strains the country’s power grid but also undercuts public trust and burdens taxpayers indirectly.
Report Highlights Malaysia’s Latent Crypto Mining Demand, Urges Regulatory Reform for Legal Investment
The report also pointed out Malaysia’s “latent demand” for crypto mining, emphasizing that with the right regulatory framework, the country could attract legal, large-scale mining investments.
A regulated and incentivized environment could help redirect illicit activity into compliant operations, enabling the government to collect taxes, reduce power theft, and encourage economic growth.
The association called on policymakers to address this issue urgently, advocating for clear laws, strict enforcement, and incentives to turn Malaysia’s crypto mining challenge into an economic opportunity.
Also Read: Malaysian Bitcoin Mining Syndicate Busted for Allegedly Stealing Electricity Worth $83,410 Monthly