Illegal crypto-mining in Malaysia to end as government begins crackdown

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Malaysia has begun hunting down illegal crypto-mining farms in the country after the Malaysian Energy Commission and the Tenaga Nasional Bhd (TNB), closed two mining firms.

Reportedly, the crackdown involved about 67 security officers from the power firms and 12 more personnel’s from the Klang Municipal Council (MPK).  According to the Enforcement Planning and Coordination Unit director at the Energy Commission, Shafie Mohammed, the crackdown was necessary to get to the root of constant loss of power in the country.

The illegal crypto-mining firms began operations in Malaysia about three months ago and connected illegally to TNB’s meters to mine cryptocurrencies. The illicit activities lead to TNB recording a $7,000 loss monthly amounting to $21,000 loss for the power firm in the last three months.

Outside the two illegal crypto-mining firms the power companies raided, the Malaysian Energy commission claims about 21 more premises are also guilty of similar crimes.  The commission stated they are not clear yet if the illegal firms connected to the power source themselves or owners of their properties did.

“The case is being investigated under Section 37 of the Electricity Supply Act 1990 and, if found guilty, they could be fined and sentenced to jail,” Mohamed added.

Illegal crypto-mining operations remain rampant

Crypto mining in the industry remains one of the most profitable businesses; hence illegal mining operations being rampant across the globe. Damage caused by these illicit operations has continued to be a problem for countries they operate.

Other countries where crypto mining is made legal attach higher tariffs to power bills of these firms, making some miners operate illegally.

Last year in Ukraine, a power plant worker was nabbed for stealing electricity to mine Bitcoin. Similarly, in Russia, a former postmaster was arrested for using his office computers for illegal crypto mining.

Crypto mining set to be legal in Kazakhstan

As the act remains illegal in many countries, the Kazakhstan legislature is set to deliberate on the passage of a bill that will make crypto mining in Kazakhstan become a legal business. Crypto miners likewise are eyeing the country as electricity tariffs are cheap.

Alongside Kazakhstan, Iran also legalized crypto mining last year and began approving anyone who wishes to embark on crypto-related activities in the country. The country already issued over 1,00 licenses to approved crypto mining outfits in Iran.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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