Malaysia’s Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir, says illegal cryptocurrency miners in Malaysia have stolen electricity valued at approximately $723 million from 2018 to 2023. He made the disclosure at an event aimed at addressing illegal activities, where authorities destroyed seized Bitcoin mining machines and other related electrical equipment worth about $467,000. According to a news report, the impact of Malaysian crypto miners on the country’s energy resources has been significant, highlighting the need for stricter enforcement and regulations.
These illicit mining operations impose a significant strain on Malaysia’s power infrastructure, managed by the state-controlled power operator, and adversely affect the communities where these miners operate. Offenders typically sidestep legal energy consumption protocols by tampering with electricity meters or illicitly diverting power directly from power lines.
Akmal made a tweet on X FKA Twitter, originally tweeted in Malay, but translated in English as, “The government is excited to implement the energy transition agenda because it wants to add new energy sources. But at the same time electricity theft reaches hundreds of millions, there are years reaching billions of ringgit a year in our country. Irony indeed.”
Malaysian Crypto Miners: Detecting and Combating Illegal Electricity Use
Despite the covert nature of these mining operations, Malaysian energy companies have developed sophisticated methods to detect unusual electricity consumption patterns. This proactive detection led to a significant crackdown in October 2022, during which over 2,000 pieces of equipment used in these Malaysian Crypto miners illegal mining operations were confiscated.
While mining cryptocurrency is not illegal in Malaysia, powering such operations through stolen electricity is strictly prohibited. Malaysia’s Universiti Teknologi MARA underscored this legal boundary in a clarifying statement issued in December 2022, particularly relevant to these Malaysian crypto miners.
The government has been relentless in its pursuit of these illegal operations, initiating crackdowns since at least August 2019. Nasir emphasized that these measures are conducted strictly within the framework of the country’s criminal laws and are part of a broader initiative to promote Malaysia’s transition to renewable energy sources.
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In some instances, dramatic measures such as crushing seized mining machines with a steamroller have been employed to send a clear message about the government’s zero tolerance for electricity theft.
Malaysian Crypto Miners: Regulation and Oversight of Crypto Exchanges
The crackdown has extended beyond miners to unregistered cryptocurrency exchanges. In a significant regulatory move, last year, the Securities Commission Malaysia required Huobi Global to cease operations due to a failure to register its trading services.
Today, only a select few platforms, such as HATA Digital, Luno, SINEGY, MX Global, Tokenize Technology, and Torum International, are officially registered to operate as cryptocurrency trading platforms in Malaysia.
Malaysian Crypto Miners: Further Actions Against Financial Fraud
The government’s vigilance extends to combating broader financial fraud, including forex and cryptocurrency investment scams. In May, authorities dismantled a forex investment fraud and cryptocurrency syndicate involved in laundering funds from overseas scams.
This operation led to the arrests of eight men and two women. Assets were seized, including 129 vehicles with exclusive registration plates valued at about $3.8 million, 75 luxury watches worth $2.1 million, 18 high-end vehicles totalling $1.7 million, and over $100,000 in cash. Additionally, bank accounts amounting to $10.8 million were frozen as part of the investigative efforts.
This continued enforcement against illegal activities in the crypto and financial markets is crucial to prevent substantial financial losses and to uphold the integrity of Malaysia’s financial systems. For more detailed updates on Malaysian crypto miners, cryptocurrency regulations and market trends, including the latest on Bitcoin (BTC), Ethereum (ETH), and other significant digital currencies, keep connected to The BIT Journal, your essential source for cryptocurrency news.
