The Malaysian Government is Pointing the Finger at Crypto Mining as the Source of Electricity Theft from the Country's Power Grid

Local media outlet Malaymail reported that the country’s minister of energy and water, Akmal Nasrullah Mohd Nasir, said that the energy-intensive activity has cost the country 3.2 billion Malaysian Ringgits (RM) or $682 million since 2018.

Malaysian authorities have accused crypto miners of stealing electricity from the country’s power grid, an activity that has reportedly cost the government 3.2 billion Malaysian Ringgits (RM) or $682 million since 2018.

According to local media outlet Malaymail, energy and water minister Akmal Nasrullah Mohd Nasir stated at a press conference on July 10 that the energy-intensive nature of crypto mining has led to substantial electricity theft.

“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,” Nasir explained. However, he added that energy supply companies have various methods to detect unusual energy consumption in an area.

Nasir further noted that the mining operations are impacting the state-controlled power operator Tenaga Nasional Berhad and that efforts to combat the theft of electricity are a top priority for the government.

During the press conference, authorities showcased 2,022 seized miners, which are valued at 2.2 million RM or $462 million.

Bitcoin mining involves a competitive energy-intensive process where specialized computers, known as ASICs, compete in a cryptographical lottery to find a random number.

Every ten minutes on average, a miner successfully finds the number, adds the latest block of transactions to the blockchain, and receives 3.25 BTC ($187,000) as a reward for their computational efforts.

Authorities in the Asian nation have been relentlessly clamping down on mining operations since at least 2019. After seizing thousands of Bitcoin miners in July 2021, Malaysian officials proceeded to destroy 1,069 miners using a steamroller.

Meanwhile, Malaysia has legalized and regulated cryptocurrencies, with the Securities Commission overseeing the industry. Tokens are considered securities, and the country has been adamant lately about reining in tax evasion.

According to The Malaysian Reserve, the country’s Inland Revenue Board (IRB) recently conducted a special operation, dubbed Ops Token, to reduce tax revenue leakage from crypto trading and improve the country’s tax administration.

The Chinese government outlawed domestic crypto mining in 2021.

Although industry experts like crypto VC Nic Carter have said it was because China was rolling out a newly streamlined nationwide power grid, China has also been adamantly anti-Bitcoin for years.

Its most recent prohibition, which kicked out major miners from the country, meant those enterprises had to find new homes. According to Bloomberg, these operations moved to countries like Malaysia, Laos, Thailand, and Indonesia.

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