Malaysia's crypto mining market is projected to grow to $5.13 billion by 2025, driven by a strategic location, a burgeoning tech ecosystem, and experience in Shariah-compliant finance. However, rampant electricity theft and inconsistent regulatory policies are hindering progress. The Access Blockchain Association of Malaysia reported that illegal mining has resulted in losses of approximately 441.6 million Malaysian ringgits ($104.2 million) in electricity costs between 2020 and September 2024. This is in addition to prior losses of 2.3 billion ringgits ($542 million) from 2018 to 2021. The report suggests that formalizing illegal mining activities could transform lost energy into legitimate revenue and tax income for the government. Surprisingly, while the government believed legal miners were few, several medium to large legal operators exist but operate discreetly due to security concerns and unpredictable regulations. The Securities Commission, which oversees crypto exchanges, lacks a dedicated mining framework, leading to a call for targeted policies that could include a mining-specific license and green initiatives to optimize mining practices in the country.

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