A report from a Malaysian news outlet, MalayMail, revealed that Bitcoin and crypto mining operations were the main cause of a significant amount of electricity theft in the country between 2018 and 2023. Despite efforts to crack down on these activities, crypto mining and related services remain legal in Malaysia.
Akmal Nasrullah Mohd Nasir, the Deputy Minister for the Energy Transition and Water Transformation in Malaysia, stated that unauthorized electricity supplies for crypto mining resulted in a loss of around RM3.4 billion ($723 million) for the country during the mentioned period. Equipment valued at $467K, seized in a crackdown in October 2022, was disposed of due to lacking safety certificates.
Nasir highlighted the negative impact of electricity theft on both the energy company TNB and the country as a whole. He emphasized the need to combat electricity theft while promoting the production of clean energy.
While crypto and mining activities are legal in Malaysia, stealing electricity for these purposes is considered illegal. A paper from Malaysia’s Universiti Teknologi MARA suggested the government establish a framework to regulate miners and prevent electricity theft.
In addition to crypto miners, general crypto service providers like exchanges have faced scrutiny from Malaysian authorities. For example, Huobi Global had to cease operations in Malaysia for failing to register as required. The government is working to address these issues and ensure compliance within the industry.