In Malaysia, a recent study by the ACCESS Blockchain Association reveals significant challenges within the cryptocurrency mining sector. The report highlights the impact of illegal mining operations on the country's power grid and economy. (Source: Trusted Editorial content, reviewed by leading industry experts and seasoned editors)
Between 2020 and 2024, illegal crypto mining activities have reportedly drained over RM441 million (approximately $100 million) from the power grid. This has led to grid instability and potential power outages for local communities. The national utility, Tenaga Nasional Berhad (TNB), has identified hidden mining rigs as the primary cause of these losses.
Despite these challenges, the report suggests that formalizing crypto mining could unlock substantial economic benefits. It estimates that this could lead to RM700 million in hardware and infrastructure investments this year alone. Additionally, it could create 4,000 new jobs and boost annual tax revenues by approximately RM150 million.
Malaysia currently ranks among the top 10 countries globally by Bitcoin hash rate share, driven by factors like cheap industrial tariffs. However, many legal miners operate discreetly due to unclear regulations and potential policy changes. The ACCESS report emphasizes the need for a clear mining license, fair pricing, and environmental checks.
The issue of illegal mining extends beyond Malaysia, with neighboring countries like Thailand and Indonesia also experiencing a surge in power theft related to crypto rigs. The report indicates a nearly 300% increase in such incidents between 2018 and 2024, totaling nearly 2,400 cases. To combat this, ACCESS proposes updating landlord liability laws and implementing energy pricing tied to sustainability.