Illegal Mining and Policy Gaps Stall Malaysia’s Crypto Growth
Electricity theft by illegal miners, inconsistent policies, and unclear regulations hinder Malaysia's cryptocurrency mining potential, according to a report by the Access Blockchain Association of Malaysia. The crypto mining market is projected to grow 110.2% by 2025, from $2.44 billion to $5.13 billion, driven by Malaysia's strategic location and tech ecosystem. Tenaga Nasional Berhad reported losses of 441.6 million ringgit ($104.2 million) due to electricity theft linked to illegal Bitcoin mining from 2020 to 2024, with total losses from 2018 to 2021 at 2.3 billion ringgit. The report emphasizes the need for a regulated environment to convert illegal mining into legitimate revenue. Legal miners exist but remain low-profile due to security concerns. Malaysia ranks 7th to 8th globally in Bitcoin hashrate, contributing 2.5% to 3%. Recommendations include creating a mining-specific license, green tariffs, closing electricity theft loopholes, and developing Shariah-compliant mining models.
