"Malaysia is actually advanced too, you're the only ones who don't know."
Cryptocurrency mining has become a popular activity in Malaysia for several years after Bitcoin (BTC) and Ethereum (ETH) became more popular among the people of this country.
In general, crypto mining is the process of verifying transactions on a blockchain network and adding them to a distributed ledger that requires a Specialized Integrated Circuit (ASIC) and a large amount of electricity consumption.
Malaysia's relatively cheap electricity has made it an attractive destination for crypto mining, but the country's government has taken steps to regulate the industry and prevent excessive electricity consumption.
In 2019, the Malaysian government announced that it would regulate crypto mining under the Electricity Supply Act 1990 which meant that miners would have to obtain a license from the Energy Commission of Malaysia (ECM) and comply with certain regulations.
The following rules not only require miners to obtain approval from the local distribution company before connecting the mining machine to the power grid but also to comply with safety regulations and ensure that the equipment is safe.
In the meantime, the government imposes a minimum electricity tariff for crypto mining activities to ensure miners pay a fair price for the electricity they use and avoid excessive power consumption.
Despite the regulations, crypto mining in Malaysia continues to thrive as Reserve Malaysia reported that the country's mining industry generated revenue of around RM7.5 billion in 2018.
