In Malaysia, the damage from illegal cryptocurrency mining has reached significant proportions over the past five years. According to the Ministry of Energy, from 2020 to August 2024, there were 13,827 cases of illegal electricity use for cryptocurrency mining. As a result, the national energy company Tenaga Nasional Berhad (TNB) suffered losses amounting to 4.6 billion ringgit, equivalent to $1.1 billion.
Scale of Losses from Illegal Mining in Malaysia
In less than five years, illegal miners stole electricity worth over $1 billion. From 2020 to August 2024 alone, nearly 14,000 cases of unauthorized connections to the power grid were recorded. The main losses were borne by Tenaga Nasional Berhad, which is actively cooperating with authorities to address the issue.
Countermeasures and Legal Framework
Malaysia does not have specific laws regulating cryptocurrency mining, so miners' activities are not subject to separate regulation. However, tampering with meters or bypassing them through illegal connections is considered a crime. To combat illegal mining, authorities conduct joint operations involving energy companies, police, and other law enforcement agencies, during which equipment is seized from offenders.
Historical Context and International Impact
The problem of illegal mining in Malaysia intensified especially after China banned cryptocurrency mining in 2021. Many miners relocated their operations to Southeast Asian countries. In the summer of 2021, Malaysian authorities destroyed equipment seized from illegal mining farms, with a total value of $1.25 million, to demonstrate their determination to fight violations. See also: Large Mining Farm Discovered in Makhachkala Causing Over 180 Million Rubles in Damages
The Situation in Russia and Measures Against Illegal Mining
Russia is also paying attention to the problem of illegal mining. Draft laws are being prepared to introduce liability for violations of mining requirements, including a separate article for electricity theft. In 2024, "Rosseti" recorded 130 cases of illegal miner connections to the power grid. Following inspections last year, more than 40 criminal cases were initiated, and total damages exceeded 1.3 billion rubles. See also: Illegal Bitcoin Mining in Malaysia: Energy System Damage and Countermeasures
Why This Matters
For miners in Russia, Malaysia's experience shows the large-scale consequences that can arise from a lack of regulation and widespread electricity theft. Strengthening control and increasing liability for illegal grid connections is becoming a global trend, affecting the operating conditions and risks for market participants.
What Should You Do?
- Monitor changes in legislation in your country and region to avoid violating new requirements.
- Use only legal connections to power grids and avoid any meter bypass schemes.
- Assess risks and potential consequences for your business when choosing equipment locations.
- Follow international best practices to respond promptly to industry changes.
