While the global crypto mining market is projected to more than double in 2025—from $2.44 billion to $5.13 billion—Malaysia may be falling behind. A new report from the Access Blockchain Association of Malaysia warns that widespread electricity theft, inconsistent enforcement, and regulatory uncertainty could prevent the country from capitalizing on this surge.
Despite Malaysia’s favorable geographic position, expanding tech infrastructure, and expertise in Islamic finance, the lack of a formalized framework for crypto mining threatens to stall industry growth. The report notes that without clear licensing mechanisms or government support, both local and foreign investors may shy away from developing legal mining operations in the country.
The opportunity cost could be significant. With industrial mining becoming a competitive global market, analysts believe that nations lacking robust policy environments risk missing out on billions in economic activity, tax revenue, and energy innovation. For Malaysia, resolving its regulatory gaps may be the difference between becoming a mining hub—or remaining a cautionary tale.
Illegal Mining Pushes Malaysia’s Power Grid to the Brink
Malaysia’s power grid is under mounting pressure from a shadow economy driven by illegal Bitcoin mining. According to national utility provider Tenaga Nasional Berhad (TNB), the company lost RM 441.6 million (approximately $104.2 million) due to electricity theft between 2020 and September 2024—losses primarily linked to unauthorized mining operations. Cumulatively, power theft between 2018 and 2021 reached RM 2.3 billion, underscoring the scale of underground activity.
The Access Blockchain Association of Malaysia notes that this “latent demand” signals both a problem and an opportunity. Rather than criminalizing an entire segment of the sector, the report advocates formalizing mining through licensing and smart incentives. Doing so, it argues, could turn stolen electricity into grid revenue and tax income.
If even a fraction of illegal miners were integrated through regulated, metered operations, Malaysia could unlock a consistent multimillion-dollar revenue stream—converting what is now an economic drain into a long-term digital infrastructure asset.
Legal Miners Operate Quietly Amid Policy Ambiguity
Contrary to past government assumptions, Malaysia is already home to legally operating crypto mining firms—some of them at medium to large scale. But instead of seeking visibility, many have opted to keep a low profile. According to a recent industry report, concerns over cyberattacks, equipment theft, and regulatory instability have made legal operators hesitant to publicize their activities.
One exception is Hatten Land, which has publicly announced mining initiatives in Melaka through partnerships with firms like Hydra X and Frontier Digital Asset Management. These collaborations involve plans to deploy thousands of rigs, indicating a growing appetite for above-ground, regulated infrastructure—if the environment allows.
Malaysia’s natural advantages—including strong digital connectivity and access to hydropower—make it well-positioned to capture a larger share of the nearly $3 billion global crypto mining market. The country currently ranks between 7th and 8th globally in Bitcoin hashrate, contributing roughly 2.5% to 3% of the network’s total computing power.
Still, legal clarity remains elusive. While the Securities Commission oversees crypto exchanges, there is no dedicated framework for mining operations. The report recommends introducing a specialized mining license, incentivizing clean energy via green electricity tariffs, closing enforcement gaps around power theft, and designing policy models that align with Malaysia’s Shariah-compliant finance ecosystem.
Quick Facts
- Malaysia’s crypto mining industry is undermined by electricity theft and regulatory gaps.
- Power provider TNB lost over $100M to mining-related theft between 2020 and 2024.
- Malaysia contributes 2.5%–3% to Bitcoin’s global hashrate, ranking 7th or 8th.
- Industry leaders call for clear licensing and green energy incentives.
