As a crypto investor with experience in the industry, I understand the concerns raised by the Malaysian government regarding Bitcoin mining and its impact on electricity costs. However, it’s important to note that not all Bitcoin mining activities are illegal or unregulated. Many miners operate legally and responsibly, using renewable energy sources or purchasing power from utility companies at fair rates.
The Malaysian authorities believe that Bitcoin mining contributes significantly to the escalating electricity costs in the region.
Energy Suppliers Detect Illegal Bitcoin Mining Activities
Malaysia’s Deputy Minister for Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir, revealed that the nation suffered a significant loss of approximately $722 million (RM3.4 billion) in electricity sales between the years 2018 and 2023 due to cryptocurrency mining activities.
TNB and the country as a whole are negatively impacted by the Bitcoin mining operations he observed.
Nasir acknowledged the increasing prevalence of Bitcoin mining due to miners’ belief that their activities are untraceable. Often, these minors lack meters in their locations, fueling this assumption. however, this misconception is unwarranted as energy providers can identify abnormal energy usage in any region through various detection techniques.
As an analyst, I can tell you that the Malaysian government is taking steps to address the issue of cryptocurrency miners stealing electricity. According to Nasir from the Ministry of Energy Transition and Water Transformation, this is a pressing concern for their department. This action comes alongside initiatives to promote the generation of eco-friendly and renewable energy sources, which will contribute positively to Malaysia’s efforts in reducing carbon emissions.
Malaysia Dispose Seized Electricity Theft Items
Concurrently, the government has initiated stricter measures against unlawful mining operations. Earlier this week, Nasir spoke out during a disposal of confiscated items relating to electricity pilferage and uncertified electrical equipment from the Energy Commission (ST) in Balakong.
Approximately 2,022 confiscated items, among which were Bitcoin mining machines, had an accumulated value of RM2.2 million or around $468,000.
The deputy public prosecutor has authorized the disposal of these items, as outlined in Sections 406A and 407 of the Criminal Procedure Code, following the completion of legal proceedings and negotiations for settlement.
It’s important to acknowledge that the cost of electricity has long been a significant hurdle for Bitcoin miners. In the opening months of this year, mining activities have seen a surge in Ethiopia as a result of the country’s extremely affordable electricity rates and its welcoming stance towards cryptocurrencies from the local administration. Likewise, Paraguay has taken strides to encourage Bitcoin miners by offering its excess hydroelectric power for sale.
On the flip side, these miners still faces operational challenges in other regions.
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2024-07-10 21:32