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Our weekly roundup of news from Asia curates the industry’s most important developments.
Southeast Asia’s power struggles with Bitcoin miners
Southeast Asia became a Bitcoin mining hotspot after the great China crackdown of 2021. Now authorities in various regions are battling a huge surge in electricity theft used to fuel these mining activities.
This week Malaysian authorities arrested seven individuals suspected of illegally mining Bitcoin using stolen electricity, according to state media outlet Bernama.
The police seized 52 mining rigs, along with electronic devices and a couple of vehicles, valued at approximately 250,000 ringgit, or $57,000.
But that’s just the tip of the iceberg of the electricity theft Bitcoin mining issue across tropical Asia.
In July, Malaysia’s deputy energy ministerreported thatillegal crypto-mining operators had stolen an estimated $723 million worth of electricity between 2018 and 2023.
And the Malaysian authorities are quite the showmen when it comes to dealing with confiscated mining equipment.
They recently used a steamroller to crush nearly 1,000 Bitcoin mining rigs, valued at $452,000. This stunt echoed a similar one in 2021 when $1.25 million worth of mining rigs were destroyed.
Across Southeast Asia, similar incidents are being reported after miners fleeing China sought refuge in neighboring countries.
In Thailand, an investigation into electricity theft in April led to the confiscation of mining rigs valued at more than $5.8 million, according to local media. The raids were conducted after authorities noticed unusually high electricity consumption at certain locations.
Indonesia has also been grappling with this problem. In December 2023, Indonesian police shut down 10 mining sites accused of stealing over $1 million worth of electricity.
Over in Laos, the state energy distributor suspended electricity supply to crypto miners earlier this year. The suspension was attributed to insufficient local energy generation, exacerbated by a drought in the first half of 2023. However, an employee disclosed that another reason for the suspension was the miners’ inability to pay their bills.
MGPerak: Polis Lupus Peralatan Bitcoin Nilai Hampir RM2 juta
PARIT – Ibu Pejabat Polis Daerah (IPD) Perak tengah melupuskan 985 peralatan yang digunakan dalam kegiatan perlombongan Bitcoin dianggarkan bernilai RM1.98 juta, pada Isnin.
Ketua Polis Daerah Perak Tengah,… pic.twitter.com/hDSzN8aGNa
— Malaysia Gazette (@MalaysiaGazette) August 19, 2024
NFTs get cultural makeover in China
Beiwen Digital, a state-owned subsidiary of Beijing Cultural Investment Development Group and Hong Kong-based JME Capital announced on Aug. 21 a collaboration it is calling the “NFT 2.0 era.”
This initiative aims to digitize and globally distribute some of China’s most recognized cultural assets through non-fungible token technology.
Their portfolio includes treasured assets such as the Up the River During Qingming painting, the Twelve Zodiac Heads, Mount Wutai and the Temple of Heaven.
These assets will be transformed into digital collectibles, with plans to launch the NFTs in Hong Kong, a city widely viewed as the economic gateway to China’s markets.
China’s enthusiasm for blockchain technology has been consistent, even as the government maintains a cold stance on cryptocurrencies.
Despite recent speculation, fueled by a tweet from Tron’s Justin Sun flirting with the idea that China may reconsider its ban on cryptocurrencies, the country remains firm in its restrictions.
Recently, cryptocurrency transactions were officially classified as mechanisms for money laundering by China’s Supreme Court.
Meanwhile, the global NFT market is experiencing a downturn. Prices for some of the world’s most valuable NFTs have plummeted, with the floor price of the so-called blue-chip Bored Ape Yacht Club dropping by over 91%, according to CoinGecko.
Similarly, CryptoPunks have seen a 78% decline.
South Korea’s latest exchange closure scam
South Korea’s Financial Supervisory Service (FSS) has issued a consumer alert in response to a surge in scams in which fraudsters impersonate cryptocurrency exchanges that are on the brink of shutting down.
Scammers are sending messages to victims urging them to withdraw cryptocurrency from so-called dormant accounts at exchanges. The messages warn that the assets will be “burned” due to business closure. However, these assets aren’t even real.
The victims are then directed to a link that leads them to a fake customer support group chat where accomplices share stories of successful withdrawals to build the victim’s confidence.
The scammers further deceive victims by presenting doctored screenshots that appear to show large crypto balances ready for withdrawal. They then demand bank transfers for fees and taxes or even request additional crypto transfers.
This scam is particularly persuasive given the current regulatory environment in South Korea.
Read also
On Aug. 22, the financial authorities started their on-site inspections of cryptocurrency exchanges as mandated by the nation’s new crypto law, which came into effect on July 19. These inspections are part of a broader initiative to crack down on suspicious cryptocurrency transactions.
Elsewhere in Asia, cryptocurrency exchanges are also facing heightened regulatory scrutiny. According to a Bloomberg report, 11 crypto exchanges in Hong Kong awaiting full licensing have hit delays after the Securities and Futures Commission uncovered unsatisfactory practices during its own on-site inspections.
Metaplanet continues Bitcoin binge
Japanese investment firm Metaplanet is living up to its nickname, “Asian MicroStrategy,” as it bought another round of Bitcoin.
On Aug. 20, the firm purchased 57.273 Bitcoin for 500 million yen ($3.42 million), raising its holdings to 360.368 Bitcoin.
This purchase follows Tokyo-based Bitcoinholic’s announcement of a 1 billion yen shareholder loan earlier in August.
Metaplanet’s Bitcoin holdings still pale in comparison to those of MicroStrategy, the US-based investment firm, which holds 226,331 Bitcoin.
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Yohan Yun
Yohan Yun is a multimedia journalist covering blockchain since 2017. He has contributed to crypto media outlet Forkast as an editor and has covered Asian tech stories as an assistant reporter for Bloomberg BNA and Forbes. He spends his free time cooking, and experimenting with new recipes.