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A decade ago, no one would have envisioned that Bitcoin would be as lucrative as it is today. What many first thought of as a scam, has now turned out to be one of the fastest growing digital currency in the world. This paper attempts to explain the legal framework and implications of Bitcoin mining, mostly in Malaysia, while also citing examples of other nations. The research attempts to shed light on how mining actually becomes illegal, despite not being directly penalized under most laws. The second part of the paper aims to critically analyse the solutions and reforms that can be put into motion in order to further facilitate the growth of Bitcoin in Malaysia. While some nations have started amending existing laws and promulgating new laws to address the rapid growth of Bitcoin, most countries still have no clear guidelines outlining Bitcoin mining and the Bitcoin trade in general. This paper also attempts to shed light on how the Bitcoin mining process can be made more environmentally friendly, so as to benefit both miners as well as the public at large.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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