- Malaysia‘s crypto mining market could grow by 110% in 2025, reaching $5.13 billion.
- Electricity theft by illegal crypto miners caused $104 million in losses for the national utility from 2020 to September 2024.
- Legal miners operate quietly due to fear of regulatory changes and security threats, despite ongoing operations.
- Malaysia ranks among the top 10 global Bitcoin mining hubs, contributing about 2.5% to 3% of mining activity.
- An industry report urges clear regulations, licensing, and incentives to turn illegal mining into taxable revenue.
Malaysia faces challenges in expanding its cryptocurrency mining market due to unchecked electricity theft, unclear regulations, and inconsistent policies. The latest report from the Access Blockchain Association of Malaysia highlights these obstacles, warning they may prevent the country from achieving its potential as a global mining center.
The report predicts Malaysia’s crypto mining industry could double in size next year, growing from $2.44 billion in 2024 to $5.13 billion in 2025. This growth could be supported by the country’s location, digital sector growth, and experience with Shariah-compliant finance. However, officials say internal issues must be resolved to ensure long-term expansion.
Tenaga Nasional Berhad (TNB), Malaysia’s national electricity provider, reported losses of $104 million between 2020 and September 2024, mainly from electricity stolen by illegal Bitcoin mining operations. From 2018 to 2021, these losses totaled about $545 million. The report notes, “Formalizing this (illegal mining) activity would transform stolen energy into legitimate revenue for TNB and generate taxable income for the government.” It suggests that connecting unlicensed miners to metered utility services could create steady revenue streams and reduce theft.
The report found that several medium- and large-scale legal mining operations already exist in Malaysia, but operators stay quiet to avoid cyberattacks, theft, and abrupt policy changes. Some companies, such as Hatten Land, have moved forward with large partnerships, including projects in Melaka with Hydra X and Frontier Digital Asset Management. “Companies like Hatten Land have already signaled partnerships involving thousands of rigs,” the report states.
Malaysia is positioned to benefit from favorable conditions including strong internet access and hydropower resources. The country currently ranks between seventh and eighth in global hash rate, contributing about 2.5% to 3% of worldwide Bitcoin mining power. The report notes that the Securities Commission, which regulates crypto exchanges, does not yet have clear rules for mining operations.
The report recommends new policies, including a mining-specific license, green power incentives, tighter rules against electricity theft, and development of Shariah-compliant mining models. More details and figures can be found in the full report from the Access Blockchain Association of Malaysia.
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