Thailand’s authorities recently raided an illegal Bitcoin mine following several weeks of power outages in a local town. The raid took place on Sunday in Ratchaburi. It is a province located west of Bangkok. They took action after numerous reports of electrical disruptions in the area.
Reports by AFP reveal that the early morning raid was conducted by the Provincial Electricity Authorities together with the local police. A chief district security officer named Jamnong Chanwong mentioned that people reported power outages in mid-July, presumably when the Bitcoin mining operation started to operate at full capacity. Regulators later found out that the mining activity required massive power consumption while the associated charges provided were insignificant. However, the operatives did not arrest any person during the raid.
Bitcoin Mining Surges in Southeast Asia After China Ban
Mining of Bitcoin in the Southeast Asia region is rapidly growing since it has cheap power, labor, and infrastructure. This trend was particularly amplified after China, one of the largest mining provinces, announced the banning of all cryptocurrency mining in 2021. As a result, countries such as Thailand have emerged as attractive venues for performing these actions, even if it is unlawful.
This is not an uncommon experience in the region. The authorities in Malaysia last week confiscated 985 Bitcoin mining rigs worth in the region of $452,500 and proceeded to burn them to further crackdown on the illicit practice. These machines were confiscated during operations against power thefts linked to crypto mining. Meanwhile, in early August, seven suspects involved in the black Bitcoin mining activity in the Sepang district of Malaysia were arrested by police for reportedly using electricity theft.
The growth of illicit Bitcoin mining in Southeast Asia is creating a load on the regional power network. These operations, concealed and unauthorized, make it possible to cause blackouts and place additional pressure on substations and transformers. While using cryptocurrencies continues to grow, the problem of regulating such use and its effects on resources and ensuring that the miners are legal-friendly becomes an even bigger issue for governments in the region.
