Malaysia has witnessed a staggering 300 percent surge in illegal crypto mining operations between 2018 and 2024, according to a report by Malaysian publication The Star, which cites the country’s leading electricity provider, Tenaga Nasional Berhad (TNB). In 2018, authorities detected 610 illicit mining cases, a number that skyrocketed to 2,397 by 2024. Efforts are now underway to pinpoint and dismantle suspected unauthorized mining sites.
Crypto mining, a highly energy-intensive process, requires advanced computers to solve intricate algorithms while continuously consuming electricity. Bitcoin remains the most mined cryptocurrency, offering rewards for generating new tokens. Regions with concentrated mining activities often experience electricity shortages and outages due to excessive power consumption.
Over the past six years, Malaysia’s law enforcement agencies have reported a rising number of complaints related to power disconnections and suspected electricity theft. With nearly 2,400 illegal mining cases recorded last year, authorities are working toward stricter regulations and oversight of these activities.
Authorities observed a surge in property owners reporting unusually steep electricity bills from their rented spaces, with costs ranging from RM 30,000 to RM 1.2 million. Investigations into these cases led officials to illegal crypto mining operations being run by tenants.
According to the report, around January this year, over 60 house and shop owners in Malaysia’s Perak state flagged excessive power bills.
Tenaga Nasional Berhad (TNB) has stated that it is collaborating with national authorities to identify, investigate, and curb the rising number of electricity theft incidents tied to crypto mining. The agency is advocating for the use of smart meters to keep precise records of energy consumption per property.
Malaysia’s Electricity Supply Act stipulates that those found guilty of power theft could face up to 10 years in prison and a fine of RM 1 million.
Currently, crypto mining is not outright illegal in Malaysia, but miners are reportedly required to register their operations and adhere to anti-money laundering regulations.
Malaysia is also in the process of refining its Web3 and crypto-related strategy. In April, Prime Minister Anwar Ibrahim met with Binance co-founder Changpeng Zhao to discuss the country’s national Web3 roadmap. As developments unfold, Malaysia may provide clearer guidelines on what is permissible for crypto miners.
Global Perspective on Crypto Mining
In an effort to promote sustainable practices, the International Monetary Fund (IMF) last year proposed a substantial tax hike on crypto mining businesses. The organization warned that crypto mining could produce 450 million tons of carbon emissions by 2027, representing 1.2 percent of the global total.
Illegal crypto mining has become a growing concern in several countries, including Malaysia. In May last year, Venezuela imposed a complete ban on crypto mining and confiscated thousands of mining machines.
Meanwhile, nations such as Norway, Russia, and Kazakhstan have implemented measures to curb the rise in unauthorized mining activities. On the other hand, regions like Bhutan, the Netherlands, and Uzbekistan are exploring environmentally sustainable approaches to crypto mining.
