Illegal Crypto Mining Costs Malaysia $104 Million, Jeopardizing $5.13 Billion Market by 2025

- Unclear regulations and electricity theft driving illegal crypto mining. - Financial losses threatening Malaysia's projected $5.13 billion crypto mining market by 2025. On June 9, 2025, Cointelegraph reported that unclear regulations and substantial electricity theft are driving a surge in illegal cryptocurrency mining in Malaysia, impacting the country's projected $5.13 billion crypto mining market potential by 2025. An industry report by the Access Blockchain Association of Malaysia identifies rampant electricity theft, inconsistent policies, and a lack of legal clarity as primary deterrents. Consequently, Malaysia's national electricity company, Tenaga Nasional Berhad (TNB), reported losses of 441.6 million Malaysian ringgit (approximately $104.2 million) between 2020 and September 2024, which TNB attributed largely to illegal Bitcoin mining. Prior losses from 2018 to 2021 had already amounted to 2.3 billion ringgit. The report suggests that formalizing illegal mining operations could convert these losses into legitimate revenue for TNB and generate taxable income for the government. Although the government previously assumed legal crypto miners were scarce, the report reveals that several medium and large-scale legal operators exist; however, these operators maintain a low profile due to concerns over cyberattacks, theft, and regulatory uncertainty. While Malaysia ranks 7th to 8th globally in hashrate and benefits from strong internet connectivity and abundant hydropower, it lacks a specific regulatory framework for crypto mining from the Securities Commission. Currently, the Securities Commission only regulates crypto exchanges; therefore, to address these issues, the report recommends several actions. These include introducing a mining-specific license, launching green tariff initiatives, closing legal loopholes related to electricity theft, and developing Shariah-compliant mining models. Market data shows that as of June 9, 11:08 UTC, Bitcoin (BTC) is trading at $107,311.84. Its 24-hour trading volume has increased by 1.665%.