In the wake of China’s 2021 ban on cryptocurrency mining, Bitcoin miners are relocating their operations to Southeast Asia.
This region is becoming a new hub for the industry, leveraging its affordable electricity, skilled workforce, and existing infrastructure.
Mining companies previously operating in China are now setting up in diverse locations across Southeast Asia.
Peter Lim, founder of Bityou, moved his 10,000-rig, 20-megawatt operation from China to Tanjung Manis, Sarawak, Malaysia.
Lim noted the abundance of abandoned industrial sites in the area, which presented a unique opportunity to repurpose unused resources.
“Southeast Asia offers a strategic advantage with its low-cost electricity and available skilled labour,” said Lim.
This sentiment is echoed by many in the industry, contributing to Malaysia’s 2.5% share of the global Bitcoin hash rate.
Despite the appeal, establishing mining operations in Southeast Asia comes with challenges.
Miners face regulatory hurdles, power supply issues, and occasional police raids due to illegal electricity usage.
Nonetheless, industry experts anticipate substantial growth in the region’s Bitcoin mining and related manufacturing sectors.
“Southeast Asia is set for significant expansion in the next few years,” stated Taras Kulyk, founder and CEO of SunnySide Digital.
Kulyk’s company, which distributes data centre hardware, sees the region as a promising market due to its rising interest and potential in the crypto space. The influx of Bitcoin miners into Southeast Asia is expected to boost the local economy, create jobs and enhance technological infrastructure.
