- Authorities identified 13,827 facilities involved in illegal electricity consumption for mining.
- TNB seized Bitcoin mining machines during a joint inspection.
- Smart meters are installed to detect suspicious energy usage in real time.
Malaysia is stepping up its response to rising energy losses linked to cryptocurrency mining, as new figures show power theft is rampant across the country.
National power company Tenaga Nasional reported losses from illegal electricity usage of more than $1 billion from 2020 to August of this year.
The scale of the thefts is forcing authorities to beef up surveillance tools, expand inspections and build new data systems as Bitcoin mining operations continue to strain the national power grid.
Authorities now consider the situation an urgent energy security issue that requires consistent monitoring.
Power theft incidents are increasing
The Ministry of Energy and Water Reform said in a parliamentary reply dated Tuesday that 13,827 facilities were found to have illegally used electricity for cryptocurrency mining during the period.
There are no specific rules governing crypto mining in Malaysia, but if the meters are tampered with or bypassed, the activity becomes illegal.
Such acts fall under the offenses detailed in the Electricity Supply Act.
The ministry confirmed that these illegal activities resulted in economic losses of RM4.6 billion, equivalent to approximately $1.11 billion.
Mining setups require continuous and high power consumption, which is often hidden to avoid detection.
This has led to rapid depletion of the power grid due to unauthorized operations.
Coordinated execution operations
TNB is conducting joint inspections with multiple enforcement agencies in response to the increasing number of cases.
Police, communications regulators, anti-corruption authorities and other authorities are participating in these operations.
Their coordinated actions resulted in the seizure of Bitcoin mining machines at many of the identified facilities.
As illegal mining activities continue to increase, TNB is moving towards a system that supports preventive monitoring.
The power company has built a database that maintains a complete record of facility owners and tenants suspected of involvement in power theft related to Bitcoin mining.
The department said the database will help identify patterns, profile high-risk locations and support future testing across various states.
Technology-driven surveillance measures
Malaysia also relies on real-time energy monitoring to reduce losses.
Smart meters are being installed at distribution substations to track consumption patterns and identify fraud faster.
These meters help detect sudden spikes and erratic behavior that often indicate hidden mining operations.
Real-time alerts allow TNB to quickly respond to theft before it spreads or escalates.
The country’s competitive power prices are attractive to miners, increasing pressure on the grid and complicating enforcement.
Mining is energy-intensive and not directly regulated, so authorities are using existing energy laws with surveillance technology to curb illegal consumption.
Enhance monitoring of the entire power grid
Rather than introducing dedicated mining regulations, Malaysia has chosen to strengthen enforcement.
Officials rely on interagency cooperation, improved testing strategies, and expanded data systems to protect utility networks.
TNB continues to refine its approach, as illegal mining operations often move from place to place after a raid, requiring continuous monitoring and up-to-date information.
