Kuwait has intensified its crackdown on cryptocurrency mining, citing the practice as a significant contributor to the nation’s ongoing power crisis. The Interior Ministry initiated a widespread operation targeting homes engaged in illegal crypto mining activities, leading to investigations of over 60 individuals. Authorities argue that these operations unlawfully exploit electrical power, potentially causing outages that affect residential, commercial, and service areas, thereby posing a direct threat to public safety .
Despite the absence of specific laws addressing crypto mining, Kuwait has previously banned cryptocurrency trading and related activities. In July 2023, the Capital Markets Authority issued a comprehensive ban on crypto payments, investments, and mining, citing concerns over money laundering and terrorist financing .
The crackdown comes amid escalating power shortages exacerbated by rapid population growth, urban expansion, rising temperatures, and delayed maintenance of power plants. Electricity consumption in areas like Al-Wafrah, where some homes used up to 20 times the normal electricity levels for mining operations, has reportedly decreased by 55% following the recent enforcement actions .
While Kuwait’s actions mirror similar measures taken by other countries facing power shortages due to crypto mining, such as Kazakhstan and Iran , the nation’s approach contrasts with that of neighboring Dubai, which has embraced the crypto industry by establishing a regulatory framework and attracting numerous crypto companies .
As Kuwait continues to grapple with its energy challenges, the government’s stringent stance on crypto mining underscores the growing tension between technological advancements and the need for sustainable energy management.
Bitcoin Mining Picture on Wikimedia by Mirko Tobias Schäfer
