As an analyst with a background in energy and technology, I find the situation in Malaysia surrounding Bitcoin mining and electricity theft to be a complex issue that requires careful consideration. While it is clear that unauthorized electricity usage for crypto mining activities has resulted in significant financial losses for Tenaga Nasional Berhad (TNB) and the Malaysian government, it is important to note that mining itself is not illegal in the country.
A Malaysian news source, MalayMail, has released a report indicating that Bitcoin and cryptocurrency mining activities were primarily behind the significant electricity pilferage in Malaysia from the years 2018 to 2023.
Despite the crackdown, crypto mining and general services are not illegal in the Asian country.
Bitcoin Mining Using Stolen Energy
As a crypto investor, I’d put it this way: From 2018 to 2023, Malaysia suffered a significant financial loss of approximately RM3.4 billion, or $723 million, due to the issue of unauthorized electricity usage for cryptocurrency mining.
At a disposal event for over 2,000 uncertified pieces of equipment, worth approximately $467,000, Akmal Nasir delivered a speech. In attendance were Ismail Zaili Yusop, the T Area Enforcement and Operations Director, and Dr V Sanjayan, the ST Chief Operating Officer.
The deputy head of the ministry pointed out that electricity pilferage harms Tenaga Nasional Berhad (TNB) as well as the public and the nation at large. He expressed:
As a crypto investor, I’ve heard some people argue that they can get away with mining cryptocurrencies at home without paying for the electricity because there aren’t any meters installed on their properties to detect usage. However, I’ve learned that energy companies have different ways of monitoring energy consumption in an area and identifying unusual patterns that could indicate crypto mining activities.
The deputy public prosecutor directed the disposal of these objects, adhering to sections 406A and 407 of the Criminal Procedure Code, following the conclusion of the legal proceedings.
As a researcher, I’ve come across information from Akmal Nasir indicating that the ministry is placing significant emphasis on two key areas: combating electricity theft and boosting the generation of eco-friendly, renewable energy.
The deputy minister made a remark on X platform about the amusing contradiction: despite efforts to introduce new energy sources, electricity pilferage in this country escalates to hundreds of millions, even billions.
During disposal, Akmal ensured that all goods were disposed of in compliance with the Environmental Quality Act 1974 and the Environmental Quality (Scheduled Wastes) Regulations 2005.
Crypto and Mining Not Illegal
As a researcher studying the regulatory landscape of cryptocurrencies and mining in Malaysia, I’ve discovered an intriguing aspect of this topic. Although authorities initiated a crackdown on crypto-related activities as early as August 2019, it is essential to clarify that owning or trading cryptocurrencies themselves is not considered illegal within the Malaysian jurisdiction. However, I came across a fascinating insight from a scholarly paper by Universiti Teknologi MARA: the act of unlawfully tapping into the electricity grid for cryptocurrency mining is the specific behavior that is deemed criminal.
As a researcher, I would recommend that the Malaysian government establish a strict regulatory framework for mining operations to prevent electricity misappropriation.
As a crypto investor, I’ve noticed that it’s not only miners but also other crypto service providers who have faced challenges from regulatory bodies, like certain exchanges. For example, Huobi Global had to cease operations in Malaysia due to their failure to register as required by the authorities.
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2024-07-14 00:50