‘Illegal crypto mining costs Malaysia $100 million in stolen electricity’
Report says country must address lack of dedicated regulatory framework for mining operations
KUALA LUMPUR, Malaysia (MNTV) — Legal crypto mining activity is expected to rise sharply in Malaysia, driven by infrastructure investment, expanding data center capacity, and increased institutional interest, says a report by the ACCESS Blockchain Association of Malaysia.
Yet, electricity theft tied to illegal mining operations continues to erode grid stability and investor confidence, adds the report.
According to the national electricity provider Tenaga Nasional Berhad (TNB), Malaysia suffered power losses exceeding 441 million Malaysian ringgit ($100 million) from 2020 to 2024, largely due to unauthorized mining setups siphoning electricity directly from the grid.
These illicit operations, often concealed in residential or commercial buildings, not only endanger public safety but also place additional stress on the country’s power infrastructure.
The ACCESS report notes that Malaysia has the potential to benefit economically from crypto mining, but must first resolve internal regulatory and infrastructural challenges to fully realize that opportunity.
The report estimates that formalizing the sector could lead to 700 million Malaysian ringgit ($165 million) in hardware and infrastructure investments this year alone, creating up to 4,000 jobs.
Despite these prospects, many legal operators remain under the radar due to security concerns and policy uncertainty.
The country’s competitive industrial electricity rates have made it an attractive destination for crypto mining.
However, the absence of a mining-specific license continues to hamper industry development.
While the Securities Commission (SC) oversees digital asset trading and custody, no regulatory body governs the mining process.
This has left industry participants facing unclear electricity tariffs, licensing requirements, and environmental compliance standards.
“Crucially, while the SC regulates the digital assets that miners produce, if deemed securities and traded or offered in Malaysia—its current guidelines do not appear to provide a specific regulatory framework or licensing regime for the act of mining itself,” the report noted.
“The focus remains on the exchange, offering, and safekeeping of assets post-creation. This lack of a dedicated mining framework is a major source of regulatory uncertainty.”
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