Malaysia Reports $722 Million Worth of Power was Stolen by Crypto Miners
Malaysia ranks as the 6th largest country in terms of hash rate, behind Ireland and ahead of Germany.
- Crypto mining is legal in Malaysia, but not electricity theft.
- Cryptocurrency is recognized as a digital currency but not as a legal tender.
- Malaysia ranks sixth in global hash rate and benefited from China’s 2021 mining exodus.
Malaysia’s Deputy Energy Transition and Water Transformation Minister, Akmal Nasrullah Mohd Nasir, reported that between 2018 and 2023, the country lost $722 million due to electricity theft for Bitcoin mining.
As the crackdown on crypto mining continues, Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah revealed that authorities seized 2,022 items worth over $420,000.
This includes equipment from a 2022 operation that confiscated Bitcoin mining machines lacking the Energy Commission (ST) safety certificate, per Malay Mail.
“The theft of electricity by those who mine cryptocurrency occurs because they believe this activity cannot be detected due to the absence of meters on their premises.
According to Malaysia’s Tenaga Nasional power calculator, the estimated stolen power consumption is approximately 4.7 TWh (terawatt-hours).
Malaysia’s Views on Cryptocurrency
Crypto mining is not illegal in Malaysia; however, bypassing electricity meters and unauthorized access to power lines are. Despite these attempts, Malaysia’s energy providers can identify unusually large power consumption by area, allowing them to detect and address electricity theft.
Cryptocurrency is legal in Malaysia but is not recognized as a legal tender or a payment instrument. According to Sumsub, under the Prescription Order 2019, cryptocurrency is classified as digital currency or digital tokens.
According to World Population Review, Malaysia is currently ranked as the sixth largest country based on hash rate, accounting for 4.58% of the global hash rate, following Ireland and surpassing Germany. Malaysia’s hash rate is just 12.94% of that of the United States, which holds 35.4% of the global hash rate.
Malaysia benefited from the 2021 crypto-mining exodus from China. According to Bloomberg, Southeast Asian nations, including Malaysia, are attractive to miners due to competitive electricity prices, skilled labor, and existing infrastructure.
