Malaysia’s Cryptocurrency Mining Challenge: Electricity Theft and Unexplored Economic Opportunities

Malaysia’s state-owned power provider, Tenaga Nasional Bhd (TNB), has suffered losses exceeding $1.1 billion in electricity revenue since 2020 due to unauthorized cryptocurrency mining, as revealed by the Energy Transition and Water Transformation Ministry. In a response to parliament, the ministry stated that

for mining purposes, mainly , from 2020 through August 2025, resulting in a total loss of RM4.57 billion ($1.11 billion). The widespread theft has led to coordinated enforcement actions, involving the police, Malaysian Anti-Corruption Commission, and other agencies working together to .

The ministry noted that TNB has taken steps to address the problem, such as developing a database to monitor suspicious properties and tenants, rolling out smart meters for instant energy tracking, and launching campaigns to raise public awareness and discourage theft

. As part of a pilot initiative, smart meters are now being used at substations to spot tampering and abnormal usage. TNB is also looking into using artificial intelligence and predictive analytics to improve its ability to detect illegal activities .

Those caught face harsh penalties under the Electricity Supply Act, including fines up to RM1 million, imprisonment for as long as 10 years, or both. The ministry stressed that these illegal activities threaten public safety, the stability of the national power supply, and the integrity of infrastructure

. Nonetheless, the absence of dedicated regulations for cryptocurrency mining continues to be a hurdle. Although mining itself is not prohibited, the lack of licensing requirements and defined electricity tariffs has created regulatory uncertainty, exposing operators to enforcement under current laws .

The increase in illegal mining has put pressure on Malaysia’s power grid, with operations often hidden in places like warehouses or homes to avoid being discovered. These setups typically bypass meters, drawing power directly from the grid and using as much electricity as entire neighborhoods, while frequently moving to stay ahead of authorities

. The ACCESS Blockchain Association suggests that regulating the industry could attract RM700 million in investments and generate 4,000 jobs, but clear rules are necessary to realize these opportunities .