Malaysia Might Take Strong Action Against Bitcoin Mining
Highlights
- Malaysia Government has spotted impact of Bitcoin mining on National Grid
- The country might start cracking down on culprits very soon
- Bitcoin miners are facing global electricity challenge amid rising cost
The Malaysian government thinks Bitcoin (BTC) mining should be blamed for the high cost of electricity in the region.
Energy Suppliers Detect Illegal Bitcoin Mining Activities
Malaysia’s Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir stated that the country has lost about $722 million (RM3.4 billion) worth of electricity supply between 2018 and 2023 to cryptocurrency miners.
He noted that these Bitcoin mining activities are detrimental to both the Tenaga Nasional Berhad (TNB) and the country at large.
Nasir acknowledged that Bitcoin mining activities are becoming widespread and this is because the miners assume that their operations can not be traced. Oftentimes, these miners do not have meters in their premises and this guides their belief that they can not be detected. Unfortunately, this is not the case because energy supply companies are able to detect unusual energy consumption in any area using different methods.
To this end, the Malaysian government plans to stop the theft of electricity by crypto miners. Nasir clearly stated that this move is a priority for the Ministry of Energy Transition and Water Transformation. This is in addition to facilitating the production of green and renewable energy, a course that will reduce the country’s carbon footprint.
Malaysia Dispose Seized Electricity Theft Items
Meanwhile, the country has commenced its crackdown on illegal mining activities. Nasir’s statements were made earlier on Wednesday when his ministry disposed seized goods related to electricity theft and electrical equipment without security certificates from the Energy Commission (ST) in Balakong.
The disposal involved a total of 2,022 seized items including Bitcoin mining machines. The entire items were worth a total of RM2.2 million, equivalent to approximately $468,000.
“These items have been ordered to be disposed of by the deputy public prosecutor in accordance with Sections 406A and 407 of the Criminal Procedure Code after going through the court and compound process,” the Deputy Minister explained.
It is worth noting that electricity cost has always been a challenge for Bitcoin miners. Early this year, miners began to relocate their operations to flock to Ethiopia due to the country’s exceptionally low electricity costs and the favorable attitude towards cryptocurrencies adopted by the local government. Similarly, Paraguay took a step forward towards supporting Bitcoin miners by selling its surplus hydro-energy.
On the flip side, these miners still faces operational challenges in other regions.
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