Rampant cryptocurrency mining cost Malaysia 103 million ringgit, and authorities stepped up crackdown

According to The Star, power theft related to illegal cryptocurrency mining is spreading at an alarming rate, costing TNB’s finances 103 million ringgit this year alone, reports Suhai Rizain of Malaysia’s Criminal Investigation Department.

Illicit crypto mining activities have taken a toll on Malaysia's energy sector, with electricity theft linked to these operations putting a significant strain on the national grid and finances. According to The Star, losses incurred by Tenaga Nasional Berhad (TNB) due to illicit Bitcoin mining have been on a concerning upward trajectory since 2020.

Illicit crypto mining activities have taken a toll on Malaysia's energy sector, with electricity theft linked to these operations putting a significant strain on the national grid and finances. According to The Star, losses incurred by Tenaga Nasional Berhad (TNB) due to illicit Bitcoin mining have been on a concerning upward trajectory since 2020.

In a recent statement, Suhai Rizain, Assistant Director of the Criminal Investigation Department, highlighted these escalating losses, with a relatively small loss of RM5.9 million reported by TNB in 2020. This loss then surged to RM140.4 million in 2021, followed by RM124.9 million in 2022, and an additional RM67.1 million last year, highlighting a persistent issue impacting the nation's energy infrastructure.

In a recent statement, Suhai Rizain, Assistant Director of the Criminal Investigation Department, highlighted these escalating losses, with a relatively small loss of RM5.9 million reported by TNB in 2020. This loss then surged to RM140.4 million in 2021, followed by RM124.9 million in 2022, and an additional RM67.1 million last year, highlighting a persistent issue impacting the nation's energy infrastructure.

In July, TNB reported an estimated $755 million in losses due to illegal Bitcoin mining activities from 2018 to 2023. While Bitcoin mining operations account for only a small percentage of Malaysia's overall energy consumption, Deputy Minister of Energy Transition and Water Transformation Akmal Nasir noted that the financial implications are substantial.

In July, TNB reported an estimated $755 million in losses due to illegal Bitcoin mining activities from 2018 to 2023. While Bitcoin mining operations account for only a small percentage of Malaysia's overall energy consumption, Deputy Minister of Energy Transition and Water Transformation Akmal Nasir noted that the financial implications are substantial.

Highlighting the illicit nature of these operations, Nasir explained that they place a heavy burden on the electricity grid, driving up costs as a result of the unauthorized electricity usage. These operations ultimately siphon off energy resources without contributing to the national grid.

Highlighting the illicit nature of these operations, Nasir explained that they place a heavy burden on the electricity grid, driving up costs as a result of the unauthorized electricity usage. These operations ultimately siphon off energy resources without contributing to the national grid.

In response to these activities, authorities have stepped up their efforts, recently seizing electrical equipment valued at nearly $500,000 that was linked to illicit mining setups. Additionally, a clampdown on tax evasion in digital assets has been initiated to curb further losses.

In response to these activities, authorities have stepped up their efforts, recently seizing electrical equipment valued at nearly $500,000 that was linked to illicit mining setups. Additionally, a clampdown on tax evasion in digital assets has been initiated to curb further losses.

Following the discovery of substantial revenue leakage from unreported trading profits in digital assets, the Malaysian Inland Revenue Board (LHDN) launched "Ops Token" this year to identify and apprehend crypto tax evaders.

Following the discovery of substantial revenue leakage from unreported trading profits in digital assets, the Malaysian Inland Revenue Board (LHDN) launched "Ops Token" this year to identify and apprehend crypto tax evaders.

The Criminal Investigation Department is set to delve deeper into the factors driving the sharp increase in losses over the past two years. Unauthorized Bitcoin mining operations typically involve diverting electricity to power high-output computers that engage in processing complex algorithms for generating digital assets. This activity comes at the expense of the national power grid.

The Criminal Investigation Department is set to delve deeper into the factors driving the sharp increase in losses over the past two years. Unauthorized Bitcoin mining operations typically involve diverting electricity to power high-output computers that engage in processing complex algorithms for generating digital assets. This activity comes at the expense of the national power grid.

As these illicit miners do not pay for the energy they siphon off, their activities place a significant strain on the country's resources. Digital assets are generated through a process that requires immense computing power and energy consumption.

As these illicit miners do not pay for the energy they siphon off, their activities place a significant strain on the country's resources. Digital assets are generated through a process that requires immense computing power and energy consumption.

In a recent Forbes report, Malaysia's regulatory and enforcement approach to cryptocurrencies is examined. While digital assets are not recognized as legal tender under Malaysia's Central Bank Act, they are classified as securities under the Capital Markets and Services Order, granting them a defined legal status within the financial regulatory framework.

In a recent Forbes report, Malaysia's regulatory and enforcement approach to cryptocurrencies is examined. While digital assets are not recognized as legal tender under Malaysia's Central Bank Act, they are classified as securities under the Capital Markets and Services Order, granting them a defined legal status within the financial regulatory framework.

Within government circles, there have been calls for a progressive approach. Notably, in 2022, Communications Deputy Minister Zahidi Zainul Abidin urged the government to recognize Bitcoin and other digital currencies as legal tender, as reported by Bloomberg.

Within government circles, there have been calls for a progressive approach. Notably, in 2022, Communications Deputy Minister Zahidi Zainul Abidin urged the government to recognize Bitcoin and other digital currencies as legal tender, as reported by Bloomberg.

On the religious front, digital assets have been recognized as genuine property by Malaysia's Shariah Advisory Council, bolstering their legitimacy within the nation's Islamic community, according to research from the Journal of Fatwa and Falak Selangor.

On the religious front, digital assets have been recognized as genuine property by Malaysia's Shariah Advisory Council, bolstering their legitimacy within the nation's Islamic community, according to research from the Journal of Fatwa and Falak Selangor.

Oversight of cryptocurrency mining activities is carried out by Bank Negara Malaysia (BNM), the country's central bank, in collaboration with the Securities Commission Malaysia. Cryptocurrency mining is legal in Malaysia, but unauthorized electricity usage is strictly monitored.

Oversight of cryptocurrency mining activities is carried out by Bank Negara Malaysia (BNM), the country's central bank, in collaboration with the Securities Commission Malaysia. Cryptocurrency mining is legal in Malaysia, but unauthorized electricity usage is strictly monitored.

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