According to an industry report released by the Malaysia Visit Blockchain Association, illegal miners, inconsistent policies and a rampant tirtarian theft of lack of legal clarity could prevent Malaysia from exploiting its potential for cryptocurrency mining.
Report predict Malaysia’s crypto mining market will grow by 110.2% in 2025, from US$2.44 billion to US$5.13 billion, catalyzed by its strategic geographical location, developing technology ecosystems and relying on expertise in Islamic doctrine financing. Nevertheless, the report shows that the country must phase out several internal factors to maintain sustained growth.
Parallel economy of illegal miners
Tenaga Nasional Berhad (TNB) lost 441.6 million Malaysian ringgit (US$104.2 million) of power theft between 2020 and September 2024, which is mainly attributed to illegal Bitcoin (BTC)mining. The losses from 2018 to 2021 reached 2.3 billion ringgit.
The report highlights Malaysia’s “potential demand” and the demand for a regulated, incentivized environment to capitalize on lost unlicensed crypto mining:
“Formalizing this (illegal mining) activity will transform stolen energy into TNB legal revenue and bring taxable income to the government.”
(Note: Value is explanatory and depends to a large extent on policy implementation, operator confidence and market conditions)
The report added that Malaysia could establish a consistent multi-million dollar revenue stream if cryptocurrency mining could be boarded a small number of illegal operators to the metrology connection.
Legal miners operate in the shadows
Although the government has previously believed that there are few legal crypto miners, the report found that several medium and large legal operators already exist in Malaysia. But they avoid publicity due to concerns about cyber attacks, body theft and sudden regulatory shifts.
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Companies like Hatten Land have begun exploring above-ground mining infrastructure, including partnerships with players like Hydra X and Frontier Digital Asset Management. “Companies like Harten Land have marked a partnership involving thousands of drilling rigs,” the report said.
Thanks to its strong internet connectivity and abundant hydropower, Malaysia is well positioned to access the nearly $3 billion crypto mining market. However, the Securities Commission, which currently regulates crypto exchanges, does not have a specific framework for mining.
According to the report, Malaysia is ranked 7th to 8th by Hashrat worldwide, accounting for 2.5 to 3% of Bitcoin mining.
Policy recommendations include creating mining-specific permits, introducing green tariff plans, closing legal loopholes in power theft and developing a mining model that complies with Sharia law.
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