Illicit Crypto Mining in Malaysia
Illegal cryptocurrency miners in Malaysia have stolen electricity worth more than $720 million over the past five years, according to Malaysian Deputy Minister for Energy, Akmal Nasir. The executive officer was speaking during an event where over 2,000 seized items, including crypto mining machines, estimated to be worth roughly $460 million, were disposed of.
According to Nasir, the illegal mining operations in Malaysia have harmed Tenaga Nasional Berhad, the country’s power operator, as well as the citizens living within the affected areas.
But how do miners steal electricity? Well, they avoid obtaining licenses from relevant authorities and formulate illegal ways to divert energy from power lines to their premises. Since these miners do not have electricity meters installed in their facilities, it is difficult for authorities to detect them.
Energy Supply Companies Discover Ways to Detect Illegal Crypto Miners
However, Nasir says Malaysian energy supply firms have adopted techniques to detect unusual electricity consumption in various areas. These methods have enabled the government to uncover several illegal crypto mining farms and seize thousands of mining equipment since 2022.
It is important to mention that crypto mining activities are not restricted in Malaysia. However, stealing energy to power mining operations is prohibited and punishable by law.
In the event, Nasir said his ministry would continue to hunt down operators of illegal mining facilities in the country and bring them to book. Moreover, he revealed that Malaysia was planning to increase renewable energy sources as part of its mission to promote green crypto mining.
Malaysia Goes After Unregistered Crypto Exchanges
Besides targeting illegal crypto miners, the Malaysian government has gone after several exchanges in recent months. In late May 2023, for example, the Malaysia Securities Commission ordered crypto exchange Huobi Global to cease its operations, accusing the company of not registering its services with the authority.
As of July 2024, the Malaysian government allows only five crypto exchanges to serve its citizens. They include Tokenize Technology and Torum International, HATA Digital, MX Global, SINEGY, and Luno.
