KUCHING: A Sarawak DAP assemblyman has called on the state government to have clear regulations and strict oversight on the widespread operations of the crypto mining industry in the state.
Pending assemblyman Violet Yong said the state government must step in to ensure that operations are conducted legally, transparently, and in a way that benefits Sarawak.
Speaking during the debate on the 2025 state budget, she said there are no specific laws regulating crypto miners, which risks not only financial losses but also jeopardising the integrity of energy resources.
She said the state government must raise the electricity rate for crypto miners, who are taking advantage of the cheap energy rates.
Yong said Sarawak Energy Bhd (SEB) in May this year reported a loss of RM4 million per month due to illegal mining operations.
She said China's harsh crackdown on cryptocurrency, crypto mining, and related businesses in 2021 has led to Sarawak emerging as an attractive destination for bitcoin miners.
"Numerous crypto mining companies have now established operations in Sarawak, with one of the biggest sites owned by Bityou in Tanjung Manis.
"Another notable player is SMI CS, a subsidiary of Singapore Exchange-listed SMI Vantage Ltd, which has partnered with the state-owned Sovereign Systemtechnik (Sarawak)," she said.
She urged Premier Tan Sri Abang Johari Openg to clarify whether the crypto miners are operating legally or illegally in Sarawak.