According to an industry report released by the Access Blockchain Association of Malaysia, illegal miners, inconsistent policies and lack of legal clarity may prevent Malaysia from exploiting the ability of cryptocurrency mining.
Report Prediction Malaysia’s Crypto Mining Market will increase by 110.2% in 2025-$ 2.44 billion to $ 5.13 billion-its strategic location covered with strategic location, specializing in technical ecosystem and Sharia-influence finance. Nevertheless, the report suggests that the country should iron many internal factors to maintain a continuous growth.
A parallel economy of illegal miners
Malaysian multinational power company Tenga Nasil Berhad (TNB) lost 441.6 million Malaysian Ringit ($ 104.2 million) in power theft between 2020 and September 2024, which the company held mainly responsible for illegal bitcoin (BTC) Mining. The damage from 2018 to 2021 reached 2.3 billion rings.
The report highlighted Malaysia’s “latent demand” and require a regulated, encouraged environment to tap in the capital lost for crypto mining without license:
“This (illegal mining) activity will formally convert the theft energy into legitimate revenue for TNB and generate taxable income for the government.”
(Note: Values are examples and policy implementation, operator trust and market status is very much dependent)
The report states that Malaysia Crypto can create a revenue stream of a consistent multimilian-dollar from mining, if it can deliver a fraction of illegal operators to a measurement connection.
Work in legal miners shadow
While the government has earlier assumed that legal crypto miners were rare, the report found that many medium and large -scale legal operators are already present in Malaysia. However, they avoid publicity due to cyber attacks, physical theft and sudden regulatory changes due to concerns.
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Firms like Haton Land have begun the discovery of up-ground mining infrastructure including partnership in Melaka with players like Hydra X and Frontier Digital Asset Management. The report said, “Companies like Haton Land have already indicated a partnership involving thousands of rigs.”
Due to its strong internet connectivity and abundant hydropower, Malaysia is well deployed to tap around $ 3 billion crypto mining market. However, the Securities Commission, which currently controls the crypto exchanges, has no specific structure for mining.
According to the report, Malaysia is at the 7th to 8th position globally by Hasht, which contributes from about 2.5% to 3% of bitcoin mining.
Policy recommendations include creating a mining-specific license, starting a green tariff initiative, closing legal flaws in power theft and developing Sharia-influence mining models.
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