After China, UK, Canada, and Japan, Malaysia also entered the list of countries carrying out a crackdown against illegal bitcoin mining. The past couple of months have seen an intensified crackdown against bitcoin mining in various countries. The most recent reports have confirmed that Malaysian authorities have destroyed the illegal mining rigs worth over $1.2 million. The authorities stressed that they will not allow any illegal mining in Malaysia.
However, this is beyond understanding that why authorities have destroyed the rigs to ground, they could reap some value. A video posted by DayakDaily, a local news agency showed that authorities are bulldozing the illegal crypto mining centers. During a police search operation in the City of Miri on the island of Borneo police found more than 1,069 Bitcoin (BTC) miners. These miners were financially supported and set up by the Sarawak Energy company. The rigs were managed by the local citizens who were using stolen electricity over the past couple of months to mine cryptocurrencies of various kinds.
Police told the Malaysian newspaper The Star, that three houses were bulldozed to the ground as they were being used as illegal rigs.
However, it has remained a mystery that why the Police straight away destroyed the mining facilities rather than gaining some financial benefit. For instance, in some other regions like Turkey and Iran where bitcoin mining is strictly banned. If authorities discover any bitcoin mining farm, they impose heave fines rather than grounding the whole rig. The same was the case in China, where authorities imposed heavy punishment on illegal miners.
The Star also revealed that the Sarawak Energy company also suffered a loss of $2 million from the operations. The federal regulatory authorities in their recent statement said that illegal bitcoin mining in Malaysia increased the government’s line losses. There is no other option for the government except shutting the illegal mining rigs down. The Cambridge Center for Alternative Finance revealed that Malaysian contribution to the world’s crypto market is 3.44%, not much higher. The country’s annual electricity consumption is around 147 terawatt-hours.
Some of the region’s top economic experts said that Malaysian authorities adopted an irrational approach towards the crackdown of illegal mining rigs. They further added that this leads to a conclusion that some higher-ranked government officials might have acted as the hand of cooperation in illegal mining. However, one thing is clear the recent worldwide crackdown against the crypto market is driven by biasedness. On the other hand, people have become more and more connected to the crypto market. Russian authorities are planning for regional supremacy and this move can help Russia in achieving its goal.