Kelvin Daminabo
Illegal Bitcoin mining operations in Malaysia have cost the country’s largest electricity utility, Tenaga Nasional Berhad (TNB), a staggering RM3.4 billion between 2018 and 2023. These activities have had a significant impact on the energy sector, resulting in annual losses of millions of dollars due to unauthorized electricity usage.
Deputy Minister of Energy Transition and Water Transformation, Akmal Nasir, has highlighted the financial toll of crypto mining on the country’s energy sector, emphasizing the need for increased enforcement. Illegal connections and unauthorized electricity consumption have forced authorities to seize Bitcoin mining rigs and appliances worth nearly half a million dollars.
Alongside combating illegal mining, Malaysian authorities are also targeting tax evasion linked to digital assets. The Inland Revenue Board (IRB) has joined forces with law enforcement and CyberSecurity Malaysia to track digital assets and assess taxable profits. Recent operations in the Klang Valley have focused on investigating tax evasion through crypto trading data retrieval from electronic devices.
The crackdown on illegal mining and tax evasion underscores Malaysia’s commitment to regulating cryptocurrency activities. The losses incurred by TNB underscore the importance of strict enforcement to safeguard the energy sector and the economy. As regulatory efforts intensify, citizens may experience adjustments in energy tariffs to deter non-compliance in the cryptocurrency sphere.