Malaysia’s crackdown on illegal mining has escalated—crypto miners stealing electricity have even resorted to using bird sounds to mask their operations.
Recently, Malaysia has ramped up enforcement against illegal Bitcoin mining, shifting from routine law enforcement to a full-scale crackdown.
The reason is simple: according to official data, electricity theft for mining has caused nearly $1 billion in losses over the past few years. Power authorities, grid companies, and energy regulators have all been forced to act together.
This time, the operation is clearly not the old approach of just knocking on doors. Now, they use drones to scan for heat sources from above neighborhoods, focusing on places with abnormal temperatures. Ground teams carry handheld devices to identify homes with unusual electricity usage patterns, and even local residents report strange mechanical noises. Some miners, to avoid detection, have even used bird sounds to cover up the noise from mining machines. It may sound absurd, but it actually works.
Over time, this has become what officials call a cat-and-mouse game: regulators are getting better at catching, miners are getting better at hiding, both sides are upgrading their tactics, and neither can fully suppress the other.
In my view, the real controversy isn’t whether mining is illegal, but whether mining damages public resources. Mining is essentially an electricity arbitrage—if power is cheap, there’s profit. But stealing electricity for mining directly pushes the cost onto the national grid and ordinary residents, which no country would tolerate.
On the other hand, as long as mining remains profitable, it will just go underground. The stricter the regulation, the more discreet the mining operations become, leading to this ongoing game of chase and evade.
But from a global perspective, the golden age of PoW mining is slowly fading. Electricity costs are increasingly sensitive, regulations are tightening, and both capital and talent are shifting toward PoS, AI, RWA, and on-chain finance.
These actions in Malaysia also show one thing: the crypto industry is becoming more regulated, and the gray-market mining economy is being systematically cleaned up. In the future, the sectors with the most growth potential won’t be those running machines in hidden warehouses, but real applications delivering value on-chain.
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Malaysia’s crackdown on illegal mining has escalated—crypto miners stealing electricity have even resorted to using bird sounds to mask their operations.
Recently, Malaysia has ramped up enforcement against illegal Bitcoin mining, shifting from routine law enforcement to a full-scale crackdown.
The reason is simple: according to official data, electricity theft for mining has caused nearly $1 billion in losses over the past few years. Power authorities, grid companies, and energy regulators have all been forced to act together.
This time, the operation is clearly not the old approach of just knocking on doors. Now, they use drones to scan for heat sources from above neighborhoods, focusing on places with abnormal temperatures. Ground teams carry handheld devices to identify homes with unusual electricity usage patterns, and even local residents report strange mechanical noises. Some miners, to avoid detection, have even used bird sounds to cover up the noise from mining machines. It may sound absurd, but it actually works.
Over time, this has become what officials call a cat-and-mouse game: regulators are getting better at catching, miners are getting better at hiding, both sides are upgrading their tactics, and neither can fully suppress the other.
In my view, the real controversy isn’t whether mining is illegal, but whether mining damages public resources. Mining is essentially an electricity arbitrage—if power is cheap, there’s profit. But stealing electricity for mining directly pushes the cost onto the national grid and ordinary residents, which no country would tolerate.
On the other hand, as long as mining remains profitable, it will just go underground. The stricter the regulation, the more discreet the mining operations become, leading to this ongoing game of chase and evade.
But from a global perspective, the golden age of PoW mining is slowly fading. Electricity costs are increasingly sensitive, regulations are tightening, and both capital and talent are shifting toward PoS, AI, RWA, and on-chain finance.
These actions in Malaysia also show one thing: the crypto industry is becoming more regulated, and the gray-market mining economy is being systematically cleaned up. In the future, the sectors with the most growth potential won’t be those running machines in hidden warehouses, but real applications delivering value on-chain.
#马来西亚 # Bitcoin Mining #偷电 # Regulatory Upgrade