Malaysia is moving rapidly towards sustainable cryptocurrency regulation. Previously Malaysia has been involved in raiding illegal cryptocurrency mining spots. After Malaysia’s police-involved in searching these mines, hundreds and thousands of mining rigs and other expensive hardware were confiscated. Last week, the policing authority of the country was covered by the media, they were found to destroy the mining rigs, worth crores with a steamroller.
The cryptocurrency market grew by a huge margin within the last two years. As people started to recognize the fast-growing systematic encrypted digital asset, activities surrounding it grew fast as well. Cryptocurrency such as Bitcoin mining was a widely practiced occupation for tech and cryptocurrency enthusiasts. However, bitcoin mining requires a huge amount of computational power, which is run by massive electrical energy. The latter is either harnessed by fossil fuel burning or burning coal, which is non-renewable energy. This is likely to cause environmental hazards, the alarming rate at which the regulators took it under notice, and consequent actions to control it consists of a lot of mixed emotions.
Malaysia Police Decided To Crush All The Raid-searched Cryptocurrency Mining Rigs
A local news outlet in Malaysia, Sarawak, Dayak Daily, uploaded the video on YouTube that shows the rigs being steamrolled. The video of the police in Malaysia destroying thousands of bitcoin and other cryptocurrency mining rigs went viral. The police last week, broke down hundreds and thousands of cryptocurrency mining rigs and other hardware into dust. All these electronic apparatuses utilized by Bitcoin miners unlawfully were crushed with a steamroller. The video showed in the frame, all the confiscated highly energy-driven bitcoin mining rigs were laid down uniformly on the ground, over which a steam roller was driven to and fro. Making it look like an action scene in some lego movie.
As per NDTV Gadgets360, authorities in the city of Miri in the coastal front of Sarawak state held onto 1,069 apparatuses from miners who supposedly stole electrical power to run mining activities. The gadgets and hardware were seized between February and April and have an expected worth of MYR 5.3 million (generally Rs. 9.4 crores). Eight individuals were captured for being associated with illegal mining exercises utilizing taken power.
Although it is neither understandable nor declared why did the authorities take up such a dramatic method of getting rid of the illegally utilized mining rigs? Is it because they don’t want to promote cryptocurrency mining by selling off that hardware in the global market or did they intend to create a message to all the bitcoin and other cryptocurrency miners about the consequences of such an act.
The market consisting of cryptocurrency, altcoins, tokens, and other digital currencies was flooded with investments and trading activities. This attracted the attention of the environmental experts and financial regulators, the huge amount of energy that is utilized in mining advanced coins is not sustainable. The energy measure of the mining computational power, through which Bitcoins are procured or mined. The procedure involves the solving of complex numerical problems to mine a bitcoin or advanced coin from the digital mesh. The competition for mining a single coin overflows through the brim. It is the competitive nature and complexity of the mining work that makes it so energy-intensive.
A sum of 1,069 units of Bitcoin mining rigs was seized in the Malaysian city, revealed a local newspaper, The Star. Every one of them held onto rigs was “discarded” at the Miri local police headquarters on Friday, July 16, 2021.
The police chief told The Star, The individuals arrested for electricity theft have been fined up to MYR 8,000 and will be kept behind bars for eight months. The electrical board report of the respective state mentioned that the Sarawak electricity board suffered damages of MYR 8.4 million, due to electricity theft by Bitcoin miners.
Electricity theft is a major issue in regions where Bitcoin is mined as some miners use illegal means to secure the power supply necessary to make a big profit from cryptocurrency mining. Because of the additional pressure, it puts on the electric grid, authorities have to often resort to load sharing that results in regular outages.