Electric theft by illegal miners, uneven policies and lack of legal clarity can impede Malaysia from the potential of cryptocurrency mining, according to an industry report released by the Access Blockchain Association of Malaysia.
The report Guess The Malaysian mining market will increase by 110.2% in 2025-from $ 2.44 billion to $ 5.13 billion-catalyzed by its strategic location, growing tech ecosystem and financial expertise following Shariah. However, the report suggests that the country should release many internal factors to maintain prolonged growth.
A parallel economy of illegal miners
Malaysian Multinational Electricity Company Tenaga National Berhad (TNB) lost at 441.6 million Malaysian Ringit ($ 104.2 million) in electricity robbery between 2020 and September 2024, with which the company was associated with illegal Bitcoin (Btc) Mining. Losses from 2018 to 2021 reached 2.3 billion rengdients.
The report has highlights Malaysia’s “latent demand” and the need for a regulated, incentivized environment to tap on the capital that has been lost to the unlucky crypto mining:
“Formalizing its (illegal mining) activity will change stolen energy on legitimate income for TNB and generate tax income for the government.”
(Note: Values describe and depends excessively on policy implementation, operator trust and market conditions)
The report added that Malaysia can develop a constant multimillion-dollar income stream from crypto mining if it can injure a portion of illegal operators in metered connections.
Legal miners operate in shadows
While the government has previously assumed that legal crypto miners are scarce, reports that there are many medium- and large-scale legal operators already in Malaysia. However, they avoid publicity due to concerns over cyberattacks, physical robbery and sudden regulation changes.
Related: The IMF has raised an increase in Pakistan’s mining power plan: Report
Companies like Hatten Land have begun to explore the upper ground infrastructure, including Melaka partnerships with players such as Hydra X and Frontier Digital Asset Management. “Companies like Hatten Land have already signed partnerships involving thousands -thousands rigs,” reports the report.
Due to strong Internet connections and abundant hydropower, Malaysia has been properly positioned to tap the nearly $ 3 billion crypto mining market. However, the Securities Commission, which currently controls crypto exchanges, has no specific framework for mining.
According to the report, Malaysia is at 7th to 8th worldwide through the hashrate, contributing around 2.5% to 3% of bitcoin mining.
Policy recommendations include creating a mining specific license, which introduces green tariff initiatives, closing legal loopholes to theft of electricity and the development of mining models that follow Shariah.
Magazine: Baby Boomers worth $ 79t finally riding with Bitcoin
