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Ruholamin Haqshanas
Author
Ruholamin Haqshanas
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Authorities in Thailand have cracked down on an illegal Bitcoin mining operation in Ratchaburi, a town west of Bangkok, following multiple complaints from residents regarding recurring power outages.
The raid, which took place on August 23, was initiated after a month-long investigation into unexplained blackouts that began in mid-July.
The investigation was conducted by the Provincial Electricity Authority (PEA) in collaboration with local police.
House Responsible for Significant Power Drain
The authorities were alerted to a significant power drain that was traced back to a single house in the area.
Upon inspection, the house was found to be the center of a large-scale Bitcoin mining operation.
Jamnong Chanwong, the chief district security officer, revealed that the electricity consumption at the property was abnormally high.
Despite this, the payments made for the electricity were suspiciously low, suggesting that the operators were illegally siphoning power to sustain their mining activities.
The equipment was installed by a company that rented the house for about four months, coinciding with the period when the area’s power outages became severe.
Although no arrests were made during the raid, authorities believe the operators fled after realizing their activities had drawn the attention of law enforcement.
The investigation remains ongoing as officials work to identify those responsible.
Illegal Bitcoin mining has become an increasing issue in Southeast Asia, with operators taking advantage of the region’s relatively low electricity costs while avoiding the steep energy expenses typically associated with cryptocurrency mining.
The practice has led to substantial economic losses in countries like Malaysia, where illegal mining operations have stolen an estimated $723 million worth of electricity between 2018 and 2023.
In response, Malaysian authorities have taken severe measures, including the destruction of over $1.2 million worth of confiscated Bitcoin mining rigs.
Thai SEC Eases Crypto Investing Restrictions
The SEC of Thailand has updated the criteria for investing in digital tokens, easing some restrictions.
In a recent meeting, the SEC Committee approved the principles for improving investment criteria and related criteria for digital asset business operations, aiming to establish effective investor protection mechanisms while considering the risks associated with digital assets.
For one, the commission has lifted investment restrictions previously imposed on retail investors for digital tokens backed by real estate or generating real estate income streams (real estate-backed ICOs) and digital tokens with infrastructure operations or revenue streams (infra-backed ICOs).
Previously, retail investors were limited to investing a maximum of 300,000 baht per offering.
The SEC also reviewed the criteria for establishing custodial wallet provider businesses, enabling them to offer services to digital asset business operators.
Earlier this year, the country’s Finance Ministry also announced the exemption of value-added tax (VAT) on digital asset trading.
By easing tax rules, the ministry has suspended the requirement to pay 7% VAT on income derived from cryptocurrency and digital token trading.
This VAT exemption, effective since January 1, 2024, has no expiration date, providing a long-term incentive for investors and traders in the digital asset space.
