Electricity Costs Rise, Malaysia Will Take Firm Action Against Bitcoin Mining

Malaysia will take firm action against Bitcoin mining (Photo; Doc. My5pay)

JAKARTA - The Malaysian government is considering firm action against Bitcoin (BTC) mining which is considered responsible for rising electricity costs in the country.

According to Coingape information, Deputy Minister of Energy and Water Transformation of Malaysia, Akmal Nasrullah Mohd Nasir, revealed that the state had lost around 3.4 billion Ringgit Malaysia (722 million US Dollars or equivalent to Rp11.6 trillion) in electricity supply between 2018 and 2023 due to crypto mining activities.

Bitcoin mining activities harm both National Workers Berhad (TNB) and the country as a whole. Miners consider their operations to be traceable, and often they do not have an electrical meter at the mining site. However, electricity providers can detect unusual energy consumption using various methods.

Therefore, the Malaysian government plans to stop the theft of electricity by crypto miners. Nasir emphasized that this step is a priority for the Ministry of Energy Transition and Water Transformation. In addition, the ministry seeks to facilitate the production of green and renewable energy to reduce the country's carbon footprint.

The state has taken firm action against illegal mining activities. On Wednesday, the ministry destroyed confiscated items related to theft of electricity and electrical equipment without a security certificate from the Energy Commission (ST) in Balakong. A total of 2,022 items were destroyed, including Bitcoin mining machines, with a total value of around 2.2 million Ringgit Malaysia (468,000 US Dollars or equivalent to Rp7.5 billion).

Electric costs have always been a challenge for Bitcoin miners. Some miners have relocated their operations to Ethiopia due to the country's very low electricity costs. Likewise, Paraguay supports Bitcoin miners by selling hydro energy surpluses.