Malaysia Cracks Down on Thieves Stealing Electricity for Bitcoin Mining
- Special tariff is a method to combat the illegal use of power.
- Khazanah Nasional, Malaysia’s national wealth fund, is Tenaga’s biggest stakeholder.
There is a rapidly expanding issue of power theft in Malaysia for bitcoin mining. On the other hand, National utility has a few suggestions on how to rein in the trend. Special tariff is a method to combat the illegal use of power that Tenaga Nasional’s chief executive indicated was being considered. According to a proposal, bitcoin mining companies should be encouraged to apply for legal energy supply by the Energy Commission.
Khazanah Nasional, Malaysia’s national wealth fund, is Tenaga’s biggest stakeholder. According to Tenaga’s president and chief executive officer Baharin Din, the company is observing an increase in the number of situations where energy is being unlawfully utilized to mine cryptocurrencies.
Surge in Demand for Crypto Mining
As the value of digital assets soared, so did the demand for cryptocurrency mining, an energy-intensive process that creates bitcoins and other digital tokens. Even while some attempts are being made to make the process more ecologically friendly, it is often seen in many cases.
Cryptocurrency mining is not prohibited in Malaysia. On the other hand, some miners steal power by interfering with meter installation or bypassing the meter and acquiring an unauthorized connection.
Figures from Tenaga show that in 2021, there would be 7,209 cases of energy theft by illicit bitcoin mining businesses, up from only 610 cases in 2018. Malaysia’s anti-corruption agency Tenaga has been working with law enforcement agencies there and the Malaysian Energy Commission and municipal governments to catch power thieves, particularly bitcoin miners.
According to Baharin, 18 people have been imprisoned for an estimated 2.3 billion ringgit (US$550 million) in energy theft from 2018 to 2021. Managing director and group CEO of Malaysian electrical power technology business Pestech International’s Paul Lim Pay Chuan says technology can assist.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
