Sharp rise in illegal cryptocurrency mining in Malaysia amid lack of clear policies

A report by the Access Blockchain Association in Malaysia stated that repeated electricity thefts by illegal miners, inconsistent policies, and a lack of legal clarity could hinder the country from benefiting from the economic potential of cryptocurrency mining.

Although Malaysia has a strategic location, a growing technical system, and experience in Sharia-compliant financing, the report indicates that the country needs to address several internal factors to capitalize on the revenues from digital mining.

Parallel economy based on illegal mining

The Malaysian multinational electricity company 'Tenaga Nasional Berhad' (TNB) lost approximately 441.6 million ringgit (104.2 million USD) due to electricity theft between 2020 and September 2024, attributing these losses primarily to illegal BTCUSD mining operations. Losses between 2018 and 2021 totaled 2.3 billion ringgit.