Malaysia has faced significant losses of approximately RM3.4 billion ($723 million) due to electricity theft from 2018 to 2023, largely attributed to cryptocurrency mining activities. This has posed a major challenge to the country’s energy sector, affecting both the national power operator Tenaga Nasional Berhad (TNB) and individual consumers.
In response to this issue, the Malaysian government is actively working to enhance its green and renewable energy capabilities. The aim is to promote energy sustainability and reduce losses associated with illegal mining operations. While cryptocurrency mining itself is legal, the unauthorized use of electricity for these activities is considered illegal by Malaysian energy authorities.
Various measures have been implemented to monitor high energy consumption and crackdown on illicit mining activities. Since 2019, authorities have conducted numerous raids and arrests to address electricity theft cases. Recently, Energy companies conducted 865 raids, seizing Bitcoin mining machines and unauthorized electrical equipment valued at around RM2.2 million ($467,000).
In a related effort, Malaysia’s Inland Revenue Board (IRB) collaborated with police and cybersecurity experts to launch ‘Ops Token’ targeting cryptocurrency traders evading taxes. This operation resulted in raids in the Klang Valley region, recovering significant amounts of unreported profits. These actions demonstrate the government’s commitment to combating illegal practices in the energy and cryptocurrency sectors.