The Crackdown on Cryptocurrency Mining in Kuwait
The Ministry of Interior in Kuwait has sounded an alarm over the illegal practice of cryptocurrency mining, revealing that over 1,000 potential mining sites have been identified through electricity consumption data. This move comes after a comprehensive ban on all cryptocurrency activities—including trading and transfers—was enforced in July 2023, following a directive from the Capital Markets Authority.
Illegal Activities and Public Safety Concerns
The Ministry’s recent findings of unusually high electricity consumption have prompted a reaffirmation of this prohibition, emphasizing that mining cryptocurrency constitutes an unauthorized practice that breaches national laws. In a public statement, officials highlighted the pressing issue that such activities are not only illegal but also endanger public safety by causing electricity outages in residential and commercial sectors, thus thwarting the provision of critical services.
Kuwait is known for its exceptionally low electricity rates, which some residents are tempted to exploit for mining operations. The Ministry of Interior has urged individuals engaged in such practices to cease immediately or face potential legal consequences. This cautionary statement is part of a broader collaborative effort with other government bodies, including the Ministry of Electricity, Water and Renewable Energy, which identified 100 households in the Al-Wafra area exhibiting alarmingly high electricity usage patterns.
Disturbing Patterns of Electricity Consumption
According to Fatima Jawhar Hayat, a spokesperson for the Ministry, these homes have recorded continual high electricity consumption that significantly deviates from typical patterns. Some households are reported to have used over 100,000 kilowatt-hours in March 2025 alone—an amount that is nearly twenty times more than neighboring homes. The whereabouts of the residents from these flagged homes remain unknown, but authorities are committed to ongoing surveillance of electricity consumption across the nation.
The State of Cryptocurrency in Kuwait
Previously, Kuwait accounted for 0.05% of Bitcoin’s global hashrate in 2022, prior to the introduction of the mining ban. Although reliable statistics on cryptocurrency ownership in Kuwait have been sparse since the imposition of the ban, signs indicate that local traders still engage with digital assets. Recently, investors were defrauded to the tune of approximately $40 million due to a scam involving a token named Bitcoin Kuwait, which plummeted shortly after its release earlier in January.
This fraudulent incident drew the attention of Dr. Safaa Zaman, a researcher who criticized the government’s inadequate enforcement of the cryptocurrency ban. She called for stronger legislation and oversight to protect investors, raising pressing questions about the current state of regulation and enforcement in the realm of cryptocurrency.
The situation continues to evolve as the Kuwaiti authorities navigate the challenges posed by digital currencies.
Edited by Stacy Elliott.
