The situation of illegal cryptocurrency mining in Malaysia is spiraling out of control, as Tenaga Nasional Berhad (TNB) – the largest national power company in the country – reported a nearly 300% increase in electricity theft cases from 2018 to 2024.
From 610 cases in 2018, the number of electricity theft cases for cryptocurrency mining has increased to 2,397 cases in 2024, causing hundreds of millions of USD in damages and putting the national power grid in a state of overload.
More concerning, some homeowners unexpectedly received electricity bills of up to 1.2 million Ringgit (approximately 278,400 USD) due to tenants secretly installing large-scale mining rigs – each machine can consume from 1kW to 8kW of electricity, according to reports from the U.S. Energy Information Administration.
To cope, TNB has coordinated with various authorities, including the police, anti-corruption commission, and local governments, to carry out a series of raids aimed at dismantling 'illegal mining farms' across the country. At the same time, TNB is also expanding the installation of smart meters to monitor consumption in real-time and detect early signs of abnormalities.
In addition, TNB calls for tightening the law, proposing a fine of up to 1 million #Ringgit or 10 years in prison for the act of illegally interfering with the power grid under the Malaysian Electricity Supply Act.
The reason why #Malaysia has become a 'paradise' for illegal miners is the extremely low electricity price, only 0.052 USD/kWh as of December 2024, while the global demand for cryptocurrency mining is rising sharply.
This situation is not only happening in Malaysia. Last week, Kuwait also discovered more than 1,000 illegal mining sites, forcing its authorities to summon 116 people for investigation due to concerns about the risk of a widespread power grid failure.
Contact with the crypto market:
The situation of illegal mining poses a significant challenge for countries with low electricity prices, while also highlighting the growing legal risks in the cryptocurrency mining industry. With increasing government regulation, miners and investors need to closely monitor local regulations to avoid unnecessary losses.
Risk warning: Investing in and mining cryptocurrencies carries many risks, including price volatility, changing regulatory frameworks, and high operating costs. This is not the right choice for every investor. Always conduct thorough research and assess risks before participating. #anhbacong
