According to the information cited by The New Straits Times newspaper, citing Deputy Minister of Energy and Water Conversion Akmal Nasir, illegal Bitcoin mining activities that have been going on since 2018 have caused a loss of 3.4 billion Ringgit (approximately 755 million USD) to the company in West Malaysia. gave.

This reveals that cryptocurrency mining puts serious pressure on the country’s economy, not only in terms of environmental impacts and energy consumption, but also in terms of cost.

According to Nasir’s statements, although cryptocurrency mining activities constitute a small part of total energy consumption, the financial impact of these activities on the country and the energy sector is quite significant.

The official emphasizes that the problem deepens further and states that additional losses due to illegal electricity connections cause losses ranging from 22 million to 44 million US dollars annually. This situation reveals that carrying out cryptocurrency mining activities illegally not only makes the solution of the problem difficult, but also increases its economic cost.

Officials emphasize that the problem should not only increase the company’s costs. Nasir states that citizens may also be negatively affected by this situation and may face measures such as tariff increases within the scope of measures to be taken to prevent illegal electricity use.

The news states that 349 Bitcoin mining devices and 1,219 electrical items without security labels were seized in previous operations. This information shows that the authorities are taking the problem seriously and are fighting against illegal mining activities.

Malaysia’s problem with cryptocurrency is not just about illegal electricity use. Authorities are also fighting against tax evasion related to digital assets. In mid-June, the Malaysian Revenue Service (IRB) together with the police and CyberSecurity Malaysia conducted a large-scale operation in the Klang Valley. In this operation, law enforcement officers accessed cryptocurrency trading data from the suspects’ mobile phones and computers in order to determine the extent of tax evasion.

The data obtained will be used to monitor digital assets and evaluate the profits made. Although it is stated that the extent of tax evasion is not yet fully known, the fact that the authorities have taken action in this area reveals Malaysia’s determination to regulate the cryptocurrency ecosystem.

It is noteworthy that the Malaysian government and authorities take a multifaceted approach to problems related to cryptocurrency mining. Just as we fight against illegal electricity use in cooperation with law enforcement, steps are taken under the leadership of the Tax Office to prevent tax evasion. This is an indication that Malaysia wants to regulate the cryptocurrency market and ensure its healthy development.

However, it is not yet clear whether these steps are sufficient to solve the problem. Malaysia’s dilemma between legalizing or banning cryptocurrency mining activities will play a key role in shaping future policies. At the same time, establishing a clear policy on taxation of cryptocurrencies will create certainty for both investors and the government.

How Malaysia will regulate the cryptocurrency ecosystem and solve this problem is an issue that should be followed closely in the coming period. The steps the country will take could set an important example for cryptocurrency regulations not only in Malaysia but also in the Southeast Asian region.

In conclusion, the challenges Malaysia faces regarding cryptocurrency raises many questions that are yet to be clarified in this area. Comprehensive and sustainable policies need to be created to solve problems such as illegal mining, tax evasion and energy consumption. Malaysia’s process of regulating the cryptocurrency ecosystem may also provide useful experience for other countries.