Key takeaways:
- After many locals complained about ongoing power shortages, Thai officials seized an illegal Bitcoin mining business in Ratchaburi, a hamlet west of Bangkok.
- After locals noticed mysterious power outages starting in mid-July, an investigation was launched.
After many locals complained about ongoing power shortages, Thai officials seized an illegal Bitcoin mining business in Ratchaburi, a hamlet west of Bangkok.
The illicit mining operations were probably the reason behind the blackouts plaguing the area for more than a month, according to the South China Morning Post, which reported on the raid that occurred on August 23.
After locals noticed mysterious power outages starting in mid-July, an investigation was launched.
The Provincial Electricity Authority (PEA) was alerted to these disruptions, and they worked with the local police to identify a specific property as the source of the power drain. The house was found to be being used as a base for Bitcoin mining upon investigation.
The property’s electricity use was abnormally high, but the payments made for that electricity were suspiciously low, according to Jamnong Chanwong, the chief district security officer. This suggests that the property’s operators may have been stealing power to support their business.
A company that had rented the residence for roughly four months had installed the Bitcoin mining equipment. Authorities said that the period during which the mining activity most likely reached full function coincided with the massive power interruptions.
Nonetheless, the inquiry is still underway, and no one was arrested during the raid. Authorities believe that the operators fled when they realized law enforcement was interested in what they were doing.
Southeast Asian countries have seen an increase in illegal Bitcoin mining as a result of operators taking advantage of the cheap electricity prices in the area to avoid paying the high energy expenses linked to the labor-intensive process of mining Bitcoins.
Between 2018 and 2023, illicit mining activities in Malaysia are anticipated to have stolen power valued at $723 million. Malaysian officials have responded by taking severe action, including destroying Bitcoin mining machines valued at over $1.2 million seized for being used unlawfully.
Although Thailand has typically been more tolerant of crypto activity than some of its neighbors, this episode shows how difficult it is to regulate a technically complex and continually changing business.
Despite the Thai government’s implementation of several restrictions to safeguard investors and uphold financial stability, the escalation of illicit mining activities suggests that more stringent enforcement and oversight are necessary.
Unlike the illicit operations discovered in Ratchaburi, Thailand’s financial authorities have recently adopted a more favorable regulatory position regarding cryptocurrencies.
The Thai Securities and Exchange Commission (SEC) waived limitations in January, enabling regular investors to buy digital tokens secured by infrastructure or real estate projects.
