Currently, a review of crypto market events by Market Haven Senior Account Manager Mark Hanna shows that Malaysia is facing a rise in illegal crypto-related activities. Recently, the country’s regulator has shut down illegally operating exchanges. A well-known example of this is the recent shutdown of Huobi Global, a popular exchange that was operating in Malaysia without a proper license.
Number of Illegal Exchanges On The Rise
This is despite the fact that it was given a specific date until which it needed to acquire a license from the securities commission. Moreover, the police recently cracked down on an illegal exchange that was dealing in Tether, the stablecoin that’s pegged to the US dollar. Investigations show that the exchange was taking money from citizens of mainland China, converting it to USDT, and sending them back the tokens.
According to further investigations, the exchange was also running an illegal online gambling operation. But it’s not just exchanges that are getting caught for these activities. Authorities on the island of Borneo have cracked down on an illegal crypto-mining operation that was running on stolen power.
Comments from a report in the Borneo Post, a Malaysian publication, shows that the police had seized all the equipment that was being used in the operation. This includes cables, servers, and more. The police have put in a report and are currently investigating the issue.
Tip From Public Leads To Latest Crack Down
The authorities uncovered the operation after receiving a tip from the public, and estimates by the area’s utility provider, Sarawak Energy, show that it had stolen about RM6,000 worth of power. That’s the equivalent of $1,300 worth of electricity.
This current crackdown is the latest in a series of cases against illegal crypto mining in the area. A similar incident occurred in Senadin, where the police seized much more equipment. Specifically, they had seized 137 servers, which indicates that the group was running a large-scale operation.
Market Haven Senior Account Manager Mark Hanna explains that such activities place an undue strain on the authorities and energy providers, which is why regulators are taking a hard approach to preventing them. The discovery of the latest illegal operations comes amidst the fact that Bitcoin’s network is having trouble reaching record levels this year.
Crypto Mining Set To Become More Competitive
That’s because the crypto-mining ecosystem has evolved to become highly competitive, and it’s likely that things will only get worse from here. A major reason for the bleak outlook is that Bitcoin is approaching another halving event in April 2024.
Due to the fact that the network is reaching record-high levels, it becomes difficult for miners to maintain their rewards. At one point, mining a single token will cost more than $30,000, but the reward will only be a few tokens.
That being said, mining still provides a lucrative method for crypto enthusiasts to benefit from the asset class without necessarily putting forward a major investment. Market Haven’s Mark Hanna explains that as things are right now, mining crypto assets like Bitcoin is the easiest that it will get, as things will only become more difficult. So, the best course of action would be for the country to regulate the activity, which encourages the local crypto sector to grow and think innovatively.