Malaysia cracks down on illegal Bitcoin mining... even deploying drones

Malaysia cracks down on illegal Bitcoin mining… deploying drones

Malaysia has intensified its crackdown on illegal Bitcoin mining, even launching aerial surveillance using drones.

The drones scan abandoned buildings and empty shops to detect heat signals, while on the ground, police monitor electricity consumption patterns as part of their enforcement efforts. Residents have reported hearing birdsong throughout the night, but this is actually fake birdsong played by miners to mask the noise.

Miners rarely stay in one place for long. After installing equipment, they set up heat shields, install surveillance cameras, and even lay glass at entrances, but in most cases, they disappear without a trace before authorities arrive. According to Malaysia’s Ministry of Energy, 14,000 illegal mining sites have been discovered over the past five years, and the national utility company, Tenaga Nasional, has suffered about $1.1 billion in losses as a result.

Last month, a special task force including Malaysia’s Ministry of Finance, central bank, and national utility company was launched. The Deputy Minister of Energy Transition warned, “Illegal mining operations threaten our power infrastructure,” and announced strong countermeasures.

Reports have spread that a coastal shopping mall in Malaysia has been converted into a large mining facility, and another mining operator has occupied an abandoned lumber mill in Sarawak. While Bitcoin mining is legal, using electricity illegally is punishable by law. The Deputy Minister of Energy Transition stated, “Even when operated legally, market volatility is too great,” and pointed out, “Ultimately, this takes the form of organized crime.”