Kuwait’s Crackdown on Unauthorized Cryptocurrency Mining
Kuwaiti officials have intensified efforts to combat unauthorized cryptocurrency mining, initiating inquiries into 31 separate incidents and interrogating a total of 116 individuals. Reports indicate that these investigations are centered around the illicit consumption of electrical power for crypto mining at 59 residential locations, which authorities allege have overloaded the national power infrastructure, leading to significant blackouts throughout the country. In a statement to the Kuwait Times, the public prosecutor declared intentions to enforce “strict legal consequences” against those who breach the relevant regulations.
Government Warnings and Actions
This crackdown follows closely on the heels of a government warning issued by Kuwait’s Ministry of the Interior, which revealed the identification of over 1,000 unregulated crypto mining sites. According to the ministry, such activities represent “an illegal exploitation of electrical resources,” posing “a direct hazard to public safety,” as highlighted in a report by Reuters dated May 1.
Just days after the ministry’s alert, a comprehensive security operation was initiated by a joint committee from the Ministry of the Interior, focusing on dismantling unlawful crypto mining operations. Earlier this year, Kuwait had put in place a total prohibition against the mining of virtual assets and cryptocurrencies, a move prompted by regulations established to counter money laundering.
Electricity Supply and Mining Challenges
Kuwait enjoys relatively low electricity costs, with residential consumers paying around 4.6 cents per kilowatt-hour, in stark contrast to the U.S. average of roughly 16.44 cents. The country generated approximately 5,110 Gigawatt-hours of electricity in January 2025, data from CEIC Data shows. However, the government has encouraged citizens to cut down on energy usage, especially with summer temperatures projected to soar beyond 52°C, which places additional stress on the electrical grid.
Despite the affordability of electricity, the hot climate in Kuwait is not ideal for cryptocurrency mining operations, which typically demand between 1,000 watts and 8,000 watts of power. While the crypto mining sector is often criticized for its strain on power grids, there is a growing push towards sustainable energy solutions among miners. Recent research from the Cambridge Centre for Alternative Finance indicates that the portion of Bitcoin mining powered by renewable energy has increased significantly from 37.6% in 2022 to 52.4% in 2023.
