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Malaysia has stepped up the fight against illegal Bitcoin mining activities after a spike in electricity theft has cost the nation an estimated $1.1 billion since 2020. The government, together with utility firms and enforcement agencies, has been developing a range of responses to curb this growing concern.
The government is blaming the losses on almost 14,000 suspected illegal Bitcoin mining sites operating in the country. The operations usually bypass the official meters and gain access to electricity without being noticed. These illegal power connections continue to cost the national utility provider, Tenaga Nasional Berhad (TNB), a significant amount of money.
In response, police are currently using drones to detect heat sources and handheld scanners to track irregular electricity consumption. The technology assists in tracking down mining installations that, in most cases, operate 24 hours a day. Recently, a raid in the Jalan Air Putih area resulted in the seizure of 30 mining machines and the arrest of a suspect. These kinds of operations are being conducted in many states.
Since the year 2020, the Ministry of Energy has estimated that almost 13,827 properties are suspected of illicit mining. As of early October 2025, enforcement teams have already researched nearly 3,000 cases of power theft that had a direct connection with cryptocurrency mining.
According to the officials, some mining activities use the same amount of electricity as industries. This increased demand poses a challenge to the stability of the national power grid, particularly where the usage is not known to regulators.
The disruptive effects fall on the residential and commercial users. In reaction, the government has established a multi-agency task force to enhance enforcement. Such a group comprises TNB, the police, the Malaysian Anti-Corruption Commission, and other regulators.
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Even though in Malaysia, cryptocurrency mining is not illegal, they have to be registered and pay for electricity. The extreme increase in illegal activities has led to debate among lawmakers about policy. Some officials have expressed concern that existing regulations may not keep pace with the rising rate of unauthorized mining.
Stricter actions are being discussed by the members of a national special committee, such as a possible nationwide prohibition of Bitcoin mining. Some people claim that the problem can be solved through stricter licensing procedures and penalties, but not by restricting legal business.
