The illegality of a bitcoin mining operation has recently attracted the attention of Thai authorities in the province of Ratchaburi, west of Bangkok. The August 23 raid followed string after string of complaints by locals over incessant power outages that had been ongoing for well over a month.
It was discovered that the mining operation was the likely cause behind the disruptions by the Provincial Electricity Authority.
Illegal Bitcoin Mine Operations Cracked Down
In the operation, security authorities found bitcoin mining rigs mounted in a rental house. Consumption records of electricity gave abnormal figures; however, the payment records for electricity showed a significantly minimal charge, said Jamnong Chanwong, the chief district security officer.
So, the heads hinted the illegitimate skills of the operations in stealing power for their businesses to operate mining devices. The previous day, the police had made an attempt to move in, but a guard informed them that they were not allowed entry.
However, most of the mining equipment had been moved by the time they came back with an appropriate search warrant, proof enough that they were tipped over that the storm was going to fall on them.
This is not the first time authorities have struck at illicit bitcoin production in the area. The episode is part of the fourth raid in Ratchaburi this year, and it is indicative of the number of unauthorized mining activities that are reportedly taking place in Thailand.
Growing Power Theft Fears
The illegal mining of bitcoins has become a huge problem, not only for Thailand but everywhere in Southeast Asia. Sometimes, the activities happen to take advantage of the comparatively cheap cost of power in this region, thus causing huge losses to local power providers.
The upswing in the illegal mining operations portends significant doubt on the sustainability of the local supply of electricity. Since they use so much, the power grid can be thrown into disarray impacting commercial and residential users.
In Thailand, for example, the government also regards Bitcoin miners as manufacturers and charges taxes accordingly. However, the increasingly frequent happening of illegal installations indicates that more stringently implemented rules and regulations are needed.
Regulatory Challenges In Thailand
Thailand has been quite supportive of cryptocurrency compared to some of its neighbors. The government has been active in putting regulation into place that fosters innovation in digital assets while protecting investors.
Very recently, the Thailand Securities and Exchange Commission permitted retail investors to purchase digital tokens, digitizing real estate or infrastructure projects. Although there are positive signs, the surge in illegal mining activities is a clear indication that the regulatory frameworks may not be sufficient to catch up with the fast development of the sector.
Featured image from Money, chart from TradingView
Powered by WPeMatico
