Malaysia is on the verge of becoming a crypto mining giant — but it’s got a big problem: illegal mining is exploding, and it’s costing the country a fortune.
According to a new report by the Access Blockchain Association of Malaysia, the nation’s crypto mining market could more than double from $2.44 billion to $5.13 billion by 2025. But without clear regulations and proper licensing, rampant electricity theft and legal uncertainty may keep that growth underground.
Electricity Theft: The Hidden Drain
Between 2020 and September 2024, state energy provider Tenaga Nasional Berhad (TNB) lost over $104 million due to electricity theft — mostly from illegal Bitcoin mining. That number balloons to $489 million when you include data from 2018 to 2021.
Imagine how much stronger the grid (and tax system) could be if these underground miners were brought into the light.
“Formalizing this activity would transform stolen energy into legitimate revenue for TNB and generate taxable income for the government,” the report notes.
Legal Miners Stay Silent
You’d think legal crypto miners would be celebrated, but in Malaysia, many of them keep a low profile.
Why?
- Fear of cyberattacks
- Worry over equipment theft
- Unpredictable regulatory changes
Still, several large-scale legal operators exist — they just aren’t making headlines (yet).
Infrastructure Already in Place
Some companies are going public with their mining ambitions. Take Hatten Land, which has partnered with Hydra X and Frontier Digital Asset Management to build above-ground mining operations in Melaka.
With fast internet and renewable power sources like hydropower, Malaysia is uniquely positioned to compete on a global scale.
It already contributes around 2.5% to 3% of Bitcoin’s total hashrate, putting it in the top 10 globally.
Big Opportunity — If Malaysia Plays It Smart
Malaysia could easily become a leading crypto mining hub in Asia, but only if it chooses the right path. The illegal mining economy is already massive — so instead of chasing shadows, it’s time to legitimize and monetize this industry.
The clock’s ticking. And with billions on the line, Malaysia has everything to gain by moving fast and smart.