The illegality of a bitcoin mining operation recently caught the attention of Thai authorities in Ratchaburi province, west of Bangkok. The raid on August 23 followed a series of complaints from local residents about incessant power outages that had been going on for more than a month.
It was discovered that mining activity was likely the cause cause behind the disturbances by the provincial electricity authority.
Illegal Bitcoin Mining Activities Tackled
During the operation, security authorities found bitcoin mining rigs mounted in a rental house. Electricity consumption data showed abnormal figures; however, electricity payment data showed a significant minimum charge, said Jamnong Chanwong, the chief district security officer.
So the heads gave a hint about the illegal skills of the operations in stealing power for their companies to operate mining equipment. The day before, police had tried to enter, but a guard had told them they were not allowed in.
However, when they returned with a proper search warrant, most of the mining equipment had already been moved. That was evidence enough that they had been overturned and that the storm was coming for them.
This isn’t the first time authorities have cracked down on illegal bitcoin production in the area. The episode is part of the fourth raid in Ratchaburi this year and is indicative of the amount of illicit mining activity reportedly taking place in Thailand.
Growing fear of power theft
Illegal bitcoin mining has become a major problem not only for Thailand but all over Southeast Asia. Sometimes, the activities take advantage of the relatively low energy costs in the region, leading to huge losses for local energy suppliers.
The revival in the illegal mining activities predicts significant doubts about the sustainability of local electricity supply. Because they use so much, the grid can become confused, which has consequences for commercial and residential users.
In Thailand, for example, the government also considers Bitcoin miners as manufacturers and taxes them accordingly. However, the increasing presence of illegal installations indicates that stricter rules and regulations are needed.
Regulatory challenges in Thailand
Thailand is quite bullish on cryptocurrency compared to some of its neighbors. The government has been active in introducing regulations that encourage innovation in digital assets while protecting investors.
Most recently, the Thailand Securities and Exchange Commission has allowed private investors to purchase digital tokens, which are used to digitize real estate or infrastructure projects. While there are positive signs, the rise in illegal mining activities is a clear indication that the regulatory frameworks may not be sufficient to keep up with the rapid development of the sector.
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