Bitcoin mining has been causing a major electricity theft crisis in Malaysia, as reported by MalayMail. Between 2018 and 2023, the country lost a significant amount of around RM3.4 billion ($723 million) due to unauthorized electricity supplies for crypto mining operations.
Deputy Minister Akmal Nasrullah Mohd Nasir of the Energy Transition and Water Transformation docket in Malaysia highlighted the issue during an event where over 2,000 pieces of equipment used for mining were seized in October 2022. The seized equipment, valued at approximately $467K, did not have the necessary safety certificates. The Deputy Minister emphasized that these electricity theft activities not only harm the national electricity provider, Tenaga Nasional Berhad (TNB), but also have negative consequences for the people and the country as a whole.
Despite the crackdown on electricity theft related to crypto mining, it is important to note that crypto and mining activities are not illegal in Malaysia. However, using stolen electricity for mining purposes is considered illegal according to a paper from Malaysia’s Universiti Teknologi MARA. The paper suggests that the government should establish a clear framework for miners to follow in order to prevent electricity theft.
In addition to crypto miners, general crypto service providers have also faced scrutiny from Malaysian authorities. For example, Huobi Global was compelled to cease its services in Malaysia because it failed to comply with registration requirements.
The Deputy Minister stressed the importance of combating electricity theft while promoting the production of green and clean energy in the country. He highlighted that energy supply companies have various methods to detect unusual energy consumption in specific areas, indicating that such illegal activities can be detected and addressed.
During the disposal of the seized equipment, strict adherence to environmental regulations will be followed to ensure proper waste management. The Deputy Minister also expressed his concerns about the irony of electricity theft reaching such high levels in a country that is striving to transition towards new energy sources.
It is crucial for the Malaysian government to address the issue of electricity theft in relation to crypto mining through effective regulations and enforcement measures. By implementing a proper framework for miners to operate within legal boundaries, the country can prevent further losses due to unauthorized electricity usage for crypto activities.