Malaysia Faces Crypto Crisis: $104M Stolen Due to Poor Regulation

- Malaysia's crypto mining market potential threatened by rampant electricity theft. - Urgent need for clear regulations due to heavy economic losses from illegal activities. Illegal crypto mining has surged in Malaysia, fueled by unclear policies that lead to significant electricity theft and economic losses. On June 9, 2025, Cointelegraph reported that Malaysia's crypto mining market will likely grow from $2.44 billion to $5.13 billion by 2025. However, rampant electricity theft and a lack of clear regulations threaten this rapid growth. According to Cointelegraph on June 9, the Malaysian multinational electricity company Tenaga Nasional Berhad (TNB) lost 441.6 million Malaysian ringgit (approximately $104.2 million). This loss resulted from electricity theft largely caused by illegal Bitcoin mining between 2020 and September 2024. An industry report by the Access Blockchain Association of Malaysia, referenced in Cointelegraph's reporting, highlighted these findings and further noted that losses from 2018 to 2021 were even higher, reaching 2.3 billion ringgit. The Access Blockchain Association of Malaysia report emphasized that Malaysia must formalize and regulate mining activities, which would help convert stolen energy into legitimate revenue for TNB and generate taxable income for the government. The report also highlighted that legal crypto miners often operate without publicity because they worry about cyberattacks, theft, and sudden regulatory changes. Additionally, the report noted, Malaysia remains well-positioned for the crypto mining market due to its strong internet connectivity and abundant hydropower. Meanwhile, the Access Blockchain Association report suggested that Malaysia ranks 7th to 8th globally in hashrate, contributing around 2.5% to 3% of Bitcoin mining. The report also made key policy recommendations, including creating mining-specific licenses, introducing green tariff initiatives, closing legal loopholes related to electricity theft, and developing Shariah-compliant mining models. Earlier reports from May 2025 also touched upon the issue of electricity theft linked to crypto mining. On May 13, 2025, the South China Morning Post reported that Malaysia incurred over $100 million in losses over the past five years, caused by power theft from illegal cryptocurrency mining operations. Similarly, on May 12, 2025, Gadgets360 reported a 300% surge in electricity theft linked to illegal crypto mining between 2018 and 2024, citing reports from The Star, Binance News, AInvest, and DeFi Planet. According to CoinMarketCap, as of 10:08 UTC on June 9, Bitcoin (BTC) was trading at $106,725.70, with its 24-hour trading volume showing a 1.493% change.