The flight of electricity rampant by illegal minors, incoherent policies and a lack of legal clarity can dissuade Malaysia from exploiting the potential of the exploitation of cryptocurrencies, according to an industry report published by the Access Blockchain Association of Malaysia.
Despite the strategic location of Malaysia, the growth of the technological ecosystem and the expertise in finance in accordance with Sharia law, the report suggests that the country must eliminate several internal factors to exploit revenues from cryptography.
A parallel economy of illegal minors
The Malaysian Multinational Electricity Company Tenaga Naséal Berhad (TNB) lost 441.6 million Malaysian Ringgit (104.2 million dollars) to the flight of electricity between 2020 and September 2024, which the company mainly attributed to the illegal Bitcoin (BTC) exploitation. The losses from 2018 to 2021 reached 2.3 billion ringgit.
The report highlighted the “latent demand” of Malaysia and the need for a regulated environment and encouraged to draw on the lost capital against cryptographic exploitation without license:
“Formalization of this activity (illegal mining) would transform the stolen energy into legitimate income for the TNB and generate a taxable income for the government.”
(Note: the values are illustrative and strongly depend on the implementation of policies, the confidence of operators and market conditions)
The report has added that Malaysia can build an income flow of several million dollars coherent in the exploitation of cryptography if it can take on a fraction of illegal operators to measured connections.
Legal minors operate in the shadows
Although the government has already assumed that minors of legal crypto were rare, the report concluded that several medium and large -scale legal operators already exist in Malaysia. However, they avoid advertising due to concerns about cyber attacks, physical flight and sudden regulatory discrepancies.
In relation: The IMF raises concerns about the Pakistan Bitcoin Mining Energy Plan: Report
Companies like Hatten Land have started to explore the mining infrastructure above the ground, including partnerships in Melaka with players such as Hydra X and Frontier Digital Asset Management. “Companies like Hateten Land have already reported partnerships involving thousands of platforms,” said the report.
Due to its high internet connectivity and its abundant hydroelectricity, Malaysia is well placed to operate the market of almost $ 3 billion for cryptography. However, the Securities Commission, which currently regulates the exchanges of cryptography, has no specific framework for mining.
According to the report, Malaysia ranks 7th to 8th in the world per hashrate, contributing approximately 2.5% to 3% of Bitcoin farm.
Political recommendations include the creation of a specific mining license, the introduction of green tariff initiatives, the closure of legal gaps in electricity flight and the development of mining models in accordance with sharia.
Review: Baby-boomers worth $ 79 t finally get on board with Bitcoin
