Schlagwort: blockchain regulation

• Authorities identified 13,827 premises involved in illicit power consumption for mining.
• TNB seized bitcoin mining machines during joint inspections.
• Smart meters are being installed to detect suspicious energy use in real time.

Malaysia is intensifying its response to rising energy losses linked to cryptocurrency mining, as new figures show widespread electricity theft across the country.

The national utility, Tenaga Nasional Bhd, has reported more than $1 billion in losses from illegal power use between 2020 and August this year.

The scale of the theft has pushed authorities to strengthen monitoring tools, expand inspections, and build new data systems as bitcoin mining operations continue to strain the national grid.

Officials now view the situation as an urgent energy security issue that requires consistent oversight.

Rising cases of electricity theft

The energy and water transformation ministry said 13,827 premises were found using electricity illegally for cryptocurrency mining during the period, according to a written parliamentary reply dated Tuesday.

Malaysia does not have specific rules governing crypto mining, but the activity becomes illegal once meters are tampered with or bypassed.

Such actions fall under offences detailed in the Electricity Supply Act.

The ministry confirmed that these illegal activities caused financial losses of 4.6 billion ringgit, equivalent to about $1.11 billion.

Mining setups require continuous and intense power consumption, which is often concealed to avoid detection.

This has allowed unauthorised operations to drain the grid at a rapid pace.

Coordinated enforcement operations

TNB has been conducting joint inspections with multiple enforcement bodies to respond to the rising cases.

The police, the communications regulator, the anti-graft agency, and other authorities have taken part in these operations.

Their coordinated actions have resulted in the seizure of bitcoin mining machines at many of the identified premises.

With illegal mining activities still increasing, TNB has shifted towards systems that support preventive oversight.

The utility has built a database holding complete records of owners and tenants of premises suspected of involvement in electricity theft related to bitcoin mining.

The ministry said the database helps identify patterns, profile high-risk locations, and support future inspections across different states.

Technology driven monitoring measures

Malaysia is also relying on real-time energy monitoring to reduce losses.

Smart meters are being installed at electricity distribution substations to track consumption patterns and identify manipulation more quickly.

These meters help detect sudden spikes or irregular behaviour, which often indicate hidden mining operations.

Real-time alerts allow TNB to respond faster before theft spreads or expands.

The country’s competitive electricity prices make it attractive for mining operators, which increases pressure on the grid and complicates enforcement.

Since mining is energy-intensive and not directly regulated, authorities are using existing energy laws supported by surveillance technologies to curb illegal consumption.

Strengthening oversight across the grid

Malaysia has chosen to enhance enforcement rather than introduce dedicated mining regulations.

Authorities are relying on interagency cooperation, improved inspection strategies, and expanded data systems to protect the utility network.

TNB continues to refine its approach, as illegal mining operations often shift locations after raids, requiring constant monitoring and updated intelligence.

The post Malaysia cracks down on crypto power theft as bitcoin mining drains the grid appeared first on CoinJournal.

• MiCA currently lets companies gain cross-border access via a single national licence.
• National regulators and firms fear a loss of control and added bureaucracy.
• France, Austria and Italy have backed ESMA’s expanded role for large firms.

The European Commission is preparing to give the European Securities and Markets Authority sweeping powers over the crypto sector.

If approved, ESMA would become the sole body responsible for supervising all crypto asset service providers in the European Union, reported Bloomberg.

The proposal marks a significant change to how the bloc regulates digital assets, placing oversight in the hands of a central authority rather than relying on 27 national regulators.

This draft plan, expected to be announced next month, comes just months before the full implementation of the Markets in Cryptoassets Regulation.

MiCA, passed in 2023, is set to become the EU’s flagship framework for crypto regulation.

Under MiCA, companies currently only need a licence in one member state to operate across the bloc.

This structure has been the result of years of work by both regulators and firms.

MiCA faces uncertainty

MiCA was designed to provide legal clarity and consistency across the EU.

It allows firms to gain authorisation in a single country and use that to offer services in other EU states. This system is known as passporting.

The goal was to reduce fragmentation and streamline operations for businesses.

But the Commission’s new plan would override this process by giving ESMA direct responsibility for approving and monitoring all providers, regardless of where they are based.

The draft proposal suggests ESMA could delegate tasks back to national authorities when needed.

However, the central point of contact would still be ESMA. This change has raised concerns from those involved in the rollout of MiCA.

With the implementation window closing in 2024, firms and local regulators worry that shifting the framework now could cause delays and confusion.

Critics argue that restarting the discussion around MiCA could undermine legal certainty.

Others say that moving responsibilities to ESMA without enough resources could weaken enforcement.

The proposal still needs support from both the European Parliament and the Council of the EU before it becomes law.

Pushback from regulators

The Commission’s move has not gone unnoticed by crypto industry bodies. Many believe that local regulators are better equipped for day-to-day engagement with firms.

Blockchain for Europe, an industry group, has warned that centralising control at this stage would divert attention from the task of getting MiCA running smoothly.

Some consultants have also pointed out that ESMA would require more staff and funding to take on such a role.

National authorities have already invested heavily in building teams and expertise to meet MiCA’s demands.

Replacing that with a central process could result in delays in licensing and supervision.

ESMA chair Verena Ross said earlier this year that the current structure, with 27 separate supervisors preparing for the same task, may not be the most efficient model.

France backs centralised model

France, along with EU institutions, has pushed hardest for expanding ESMA’s powers.

In September, regulators from France, Austria and Italy called for ESMA to supervise major crypto firms directly, while smaller companies could remain under national watch.

This idea would create a two-tier system and offer a compromise between full centralisation and local control.

The proposal is part of a wider trend in the EU to centralise financial oversight.

Brussels has also suggested giving ESMA control over clearing houses, trading venues, and depositories.

However, some countries have resisted, arguing that giving up national control could create unnecessary bureaucracy and reduce flexibility.

The urgency of reform increased in July when ESMA raised concerns about Malta’s crypto licensing practices.

The Maltese regulator had issued MiCA approvals to several firms, prompting questions about consistency and due diligence across the EU.

This incident added weight to the argument for a more unified supervisory model.

As the Commission finalises its proposal, the crypto sector remains on edge.

Businesses are waiting to see whether their licensing and regulatory future will remain at the national level or shift entirely to an EU-wide body.

The post Why the European Commission wants to seize control of crypto oversight appeared first on CoinJournal.

• The AfD party is urging Germany to treat Bitcoin as a strategic national asset.
• The AfD Bitcoin reserve motion seeks MiCA exemption and clear, favorable tax rules.
• AfD is pushing Bitcoin as “state-free money” to boost sovereignty.

Germany’s Alternative for Germany (AfD) party has put forward a parliamentary motion urging the government to recognize Bitcoin as a strategic asset.

The short, forceful proposal argues Bitcoin deserves distinct treatment from other crypto-assets and calls for tax and regulatory relief to bolster innovation and national sovereignty.

The Bitcoin strategic reserve motion by AfD

The AfD motion urges lawmakers to treat Bitcoin differently from tokens and stablecoins covered by the EU’s Markets in Crypto-Assets (MiCA) framework.

It argues Bitcoin’s decentralised design and fixed supply make it a unique form of digital value that should not be shoehorned into rules intended for centrally issued crypto instruments.

The party explicitly proposes that the government consider accumulating Bitcoin within national reserves as a hedge against inflation and currency volatility.

A central demand in the motion is tax certainty.

AfD lawmakers want to preserve the existing 12-month holding exemption for private capital gains and maintain Bitcoin’s exemption from VAT.

They also call for private mining and running Lightning Network nodes to be clearly classified as non-commercial activities, reducing administrative burdens for individual participants.

The motion stresses the right to self-custody and warns that legal uncertainty deters long-term private investment.

AfD frames the proposal as part of a broader defence of digital sovereignty.

The party opposes a European digital euro and portrays Bitcoin as “state-free money” that can protect liberties and reduce dependence on centrally issued currency instruments.

The motion arrives amid debate over Germany’s decision in mid-2024 to sell nearly 50,000 BTC seized from criminal proceedings — an action AfD and others now characterise as a policy mistake given subsequent price movements.

The proposal argues that heavy-handed national implementation of MiCA risks capital flight and diminishes Germany’s standing in blockchain innovation.

AfD lawmakers say excessive rules will push firms and talent to friendlier jurisdictions, eroding competitiveness in a field with rapidly evolving technology and commercial models.

AfD also highlights potential synergies between Bitcoin and energy policy.

The motion suggests that productive uses of excess renewable supply — including mining — could create a technological and economic fit between Germany’s energy transition and the Bitcoin network.

The party frames state accumulation of Bitcoin as a prudent diversification of reserve assets, drawing parallels to moves and proposals in other European countries that have discussed or adopted similar approaches.

Beyond urging a strategic statement from the federal government, the motion seeks concrete commitments: keep tax advantages intact, exempt certain private operations from commercial classification, enshrine self-custody rights, and open study of Bitcoin’s role in reserves and energy integration.

AfD wants the Bundestag to formally recognise Bitcoin’s distinct status and to restrain national rule-making that would extend MiCA beyond its intended scope.

The reaction from the public

Supporters in crypto circles welcomed the proposal as a sign that mainstream political debate is shifting away from dismissive tropes about digital currencies.

Critics, however, worry the plan could politicise reserve policy or clash with EU regulatory intent.

Observers note that Germany occupies an outsized spot in Europe’s economy, so any move to treat Bitcoin strategically would reverberate across markets and policy debates.

As Bundestag review AfD’s motions and the larger question of how national policy should sit alongside EU rules, whether the proposal gains traction depends on cross-party calculation about economic benefits, sovereign risk, and regulatory coherence.

The post Germany’s AfD party proposes Bitcoin as strategic asset appeared first on CoinJournal.

• Thailand’s SEC raids site tied to World’s WLD exchange over alleged unlicensed operations.
• Regulators in Germany, Kenya, Brazil, and Indonesia also probe World’s biometric crypto model.
• Global scrutiny grows over iris-scan data use as the World faces new compliance challenges.

World, the digital identity project led by OpenAI CEO Sam Altman and formerly known as Worldcoin, has run into fresh regulatory trouble in Thailand.

Authorities conducted a raid on an iris-scanning location allegedly tied to the platform, underscoring how global scrutiny of biometric-based crypto projects is deepening.

Thailand’s Securities and Exchange Commission (SEC), working with the Cyber Crime Investigation Bureau (CCIB), announced on Friday that it had raided a site associated with “WLD exchange services.”

Investigators suspect the operator violated digital-asset laws by running an unlicensed exchange.

According to official data, World runs 102 “orb” locations in Thailand, where users scan their irises to receive a “World ID” in exchange for WLD, the project’s native token.

Each verified participant receives WLD as a reward for proving their human identity, but the SEC’s latest intervention raises questions about whether these operations comply with Thailand’s licensing framework.

Thai authorities cite unlicensed digital-asset activity

The SEC and CCIB said the raid uncovered evidence that the site had offered exchange-related services without authorisation.

The suspect has been arrested and is expected to face charges under Thailand’s digital-asset regulations.

Authorities emphasised that any entity offering digital-asset services, including token distribution or exchange functions, must obtain a license from the Ministry of Finance and register with the SEC.

World maintains that it only operates in jurisdictions where its activities are legally permitted.

The company’s website states that “eligibility for WLD tokens is restricted based on geography, age, and other factors,” adding that it bears no responsibility for the trading of WLD on third-party centralised or decentralised exchanges.

Growing global pressure on biometric crypto models

This latest crackdown in Thailand adds to a string of global investigations into the World project, which launched in July 2023.

Regulators in Germany, Kenya, Brazil, and Indonesia have previously voiced data-privacy and licensing concerns.

In May, Indonesia’s Digital Ministry said it was investigating local World operators over possible registration violations and suspicious activities.

The company voluntarily paused its verification services there while clarifying licensing requirements.

In Germany, data-protection authorities have warned that biometric information, such as iris scans, could pose serious risks if not properly anonymised or stored.

Kenya temporarily suspended World’s local operations last year, citing privacy and security concerns after thousands queued for iris scans in exchange for free tokens.

Brazilian officials have also asked for greater transparency on how biometric data is collected and stored under World’s verification process.

Worldcoin faces ongoing compliance challenges

Since its launch, World has positioned itself as an ambitious attempt to create a “global digital identity network,” verifying users’ humanity in an era of artificial intelligence and deepfakes.

The WLD token was designed to reward individuals who opt into the system and to build an ecosystem of verified human users.

Yet the project’s expansion strategy—particularly in developing markets—has raised alarms.

Critics argue that rapid onboarding in regions with weaker regulatory oversight exposes vulnerable populations to privacy and legal risks.

Despite these concerns, World continues to operate in more than 30 countries, relying on hundreds of orb devices worldwide.

Its website indicates that operations are constantly reviewed to ensure compliance with local laws, although recent raids suggest this process remains inconsistent across jurisdictions.

While Thailand’s SEC has not specified the scale of the suspected violations, the arrest signals a stronger enforcement stance amid the country’s broader efforts to tighten oversight of crypto-related businesses.

The development could push World and similar biometric-based crypto projects to adopt stricter compliance standards and clearer legal frameworks before expanding further in Asia.

The post Thailand raids Worldcoin-linked site as regulators intensify crypto scrutiny appeared first on CoinJournal.