By Alicia Maher
A key concern regarding cryptocurrencies is their energy consumption, on top of their illegal usage, which further strengthens skepticism.
It is undeniable that crypto mining has gained enormous popularity in recent years and has become a significant source of income for many people in the world. Crypto mining can be considered a method for making money, but this should not be seen as a way to get rich fast. Many Malaysians, however, see cryptocurrency mining as such.
In the country, there have been many cases of electricity theft for a long time. The investigation and analysis revealed that electricity is being illegally used for crypto mining. Eventually, this power crime has escalated to become a significant crime.
Tenaga Moves to Curb the Illicit Act
The Malaysian-based National Utility Company, under the name Tenaga Nasional Berhad who is responsible for electricity use in the country, for this reason, has come up with several ideas that will be helpful to fight against this unacceptable electricity crime if they are applied correctly.
Tenaga Nasional Bhd. has revealed its decision on effectively stopping the fraudulent act of illegal use of electricity. According to the company, it is currently considering new tariffs on bitcoin miners and mining operations in the region. This way, no one would be able to use electricity illegally, either for mining cryptocurrencies or for any other reason.
Furthermore, the Malaysian Energy Commission has said that it intends to issue a proposal that will help and encourage cryptocurrency miners to use legal methods to purchase electricity for crypto mining rather than the former method. Din Bahrain, the CEO and President of Tenaga Nasional Bhd, asserted that irresponsible offenders were violating energy security standards at the expense of the reliability and security of power supply.
As a result, Tenaga is putting all effort into working alongside the Malaysia’s Energy Commission, the anti-graft agency, and the law enforcement agencies to put an end to the act. From 2018 to 2021, 18 people have been found guilty and arrested for these illicit activities, and more than $550 million worth of electricity has also been stolen.
The Consequences of Illegal Use of Electricity Consumption
President Din Bahrain has also stated that the unauthorized use of electricity for bitcoin mining could result in fire outbreaks throughout the region. Currently, the country is primarily dealing with energy theft, which is also becoming more prevalent over time.
Cryptocurrency mining is not illegal in Malaysia, but it is among those countries that have seen significant growth in the industry in the past few years. Unlawful energy use of any sort is being forbidden in the country; this includes tampering with the meters or bypassing them to gain access to power for the bitcoin miners.
According to statistics from 2018, Malaysia had approximately 610 incidents of illegal electricity use. Nevertheless, the figure is estimated to increase to almost 7,200 by 2021 if nothing is done to stop the act.