Malaysia's crypto mining market is projected to grow from $2.44 billion to $5.13 billion by 2025, yet it is hampered by rampant illegal mining and the absence of clear regulations. A report by the Access Blockchain Association of Malaysia highlighted that electricity theft due to illegal mining cost Tenaga Nasional Berhad around 441.6 million Malaysian ringgits ($104.2 million) from 2020 to September 2024. Despite the potential for significant economic contributions from formalized mining, many legal operators choose to remain low-profile due to fears of theft and regulatory changes. The report emphasizes the need for a regulated environment to capture lost capital from unauthorized miners, suggesting that formalizing these operations could yield revenue for the government and utility companies. Malaysia ranks 7th to 8th globally in Bitcoin hashrate, contributing between 2.5% and 3% to the global total, but needs specific mining regulations to maximize its market potential. Recommendations include establishing a mining-specific license and developing Shariah-compliant mining models.

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