Well now, gather ’round, folks! It seems that in the land of Malaysia, where the sun shines bright and the policies are as clear as mud, there’s a ruckus brewing in the world of cryptocurrency mining. According to a report from the Access Blockchain Association of Malaysia, it appears that a band of illegal miners is pilfering electricity like it’s going out of style! ⚡️
Now, hold onto your hats, because this report predicts that Malaysia’s crypto mining market is set to balloon by a whopping 110.2% by the year 2025 — jumping from a modest $2.44 billion to a staggering $5.13 billion! All thanks to its prime location, a tech ecosystem that’s growing faster than a weed, and a knack for Shariah-compliant finance. But, as with all good things, there’s a catch: the country needs to sort out its internal mess before it can truly ride the crypto wave. 🌊
A parallel economy of illegal miners
Now, let’s talk about the elephant in the room — or should I say, the electricity thief? The Malaysian electricity giant, Tenaga Nasional Berhad (TNB), has reported losses of 441.6 million Malaysian ringgit (that’s about $104.2 million for those keeping score) due to these sneaky miners between 2020 and September 2024. And if you think that’s bad, just wait — losses from 2018 to 2021 hit a staggering 2.3 billion ringgit! Talk about a shocking revelation! 💸
The report goes on to highlight Malaysia’s “latent demand” for a regulated environment, suggesting that if they could just wrangle in those illegal miners, they could turn stolen energy into a legitimate revenue stream for TNB and, lo and behold, generate some taxable income for the government. Imagine that! 💡
According to the report, if Malaysia can just get a handle on a few of these illegal operators and get them connected to the grid, they could be looking at a consistent multimillion-dollar revenue stream from crypto mining. Who knew crime could be so profitable? 😏
Legal miners operate in the shadows
Now, don’t let the government fool you into thinking there are no legal miners in Malaysia. The report reveals that there are indeed several medium- and large-scale legal operators lurking about, but they’re keeping a low profile — probably because they’re worried about cyberattacks, physical theft, and the ever-changing regulatory landscape. Can’t blame them for being cautious! 🕵️♂️
Companies like Hatten Land are starting to explore above-ground mining infrastructure, forming partnerships in Melaka with players like Hydra X and Frontier Digital Asset Management. The report even mentions that Hatten Land has signaled partnerships involving thousands of rigs. Now that’s what I call a mining party! 🎉
With its robust internet connectivity and an abundance of hydropower, Malaysia is sitting pretty, ready to dive into the nearly $3 billion crypto mining market. But hold your horses! The Securities Commission, which currently regulates crypto exchanges, has yet to whip up a specific framework for mining. Talk about putting the cart before the horse! 🐴
According to the report, Malaysia ranks somewhere between 7th and 8th globally in terms of hashrate, contributing around 2.5% to 3% of Bitcoin mining. Not too shabby, eh? But if they want to keep up, they’ll need to create a mining-specific license, introduce some green tariff initiatives, close those pesky legal loopholes in electricity theft, and develop Shariah-compliant mining models. Sounds like a tall order, but who knows? Maybe they’ll pull it off! 🤞
Read More
2025-06-09 11:58