Is crypto mining legal in Malaysia?

Crypto mining in Malaysia is legal when you pay for the power you use. Crypto is legal to own and trade, as explained in is crypto legal in Malaysia, and we found no mining licence as of October 2026. What the authorities pursue is mining run on stolen electricity, which has become a large and costly problem.

Is bitcoin mining legal in Malaysia?

Yes. The Securities Commission (SC) has regulated digital assets since 2019, when it announced that the offering and trading of digital assets, and related activities, would need SC authorisation. Its framework covers issuers and exchange operators. Mining your own coins is not part of it.

When officials talk about illegal bitcoin mining, the cases they describe involve stolen power. The raids reported in 2026 were investigated under electricity and criminal law rather than securities law.

How big is electricity theft for bitcoin mining in Malaysia?

Very big. In a written reply to parliament reported in November 2025, the Energy Transition and Water Transformation Ministry said 13,827 premises were found illegally using electricity for bitcoin mining between 2020 and August 2025, costing Tenaga Nasional Berhad (TNB) about RM4.57 billion. TNB has run joint raids with police, seized machines and rolled out smart meters to spot unusual use.

In May 2026, a deputy minister put the ongoing loss at about RM700 million a year and said enforcement would be stepped up nationwide. He warned homeowners that they could be held responsible for tenants who mine with stolen power, and suggested moving the TNB account into the tenant's name.

Penalties can be heavy. In a July 2026 Johor case, police said they were investigating under section 37(1) of the Electricity Supply Act 1990, which carries a fine of up to RM100,000, up to five years in prison or both, and under the Penal Code offence of mischief. Illegal tapping is also a fire and shock risk, officials have warned.

How is crypto mining taxed in Malaysia?

The Inland Revenue Board (LHDN) set out its view in the second edition of its digital currency guidelines, published December 5, 2025. Anyone running a mining business or carrying out mining activity is subject to income tax under existing law. Mining expenses may be deducted and losses may be allowable. Fees for mining on behalf of clients may also be taxable.

Whether selling mined coins is taxed again depends on whether the gain is capital or revenue in nature, judged by badges of trade such as holding period and how often you trade. For rates and the capital gains position, see how crypto is taxed in Malaysia and how crypto mining is taxed.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.