Kuwaiti authorities have escalated their crackdown on illegal cryptocurrency mining, initiating investigations into 31 cases and questioning 116 individuals. These investigations involve the illicit use of electricity across 59 residential properties, straining the national power grid and causing blackouts. The public prosecutor has vowed strict legal action against violators, according to the Kuwait Times.
The crackdown follows a warning issued two weeks prior by Kuwait's Ministry of the Interior, which cited the discovery of over 1,000 illegal crypto mining locations. The ministry characterized crypto mining as an unlawful exploitation of electrical power and a direct threat to public safety, as reported by Reuters on May 1. Three days after the warning, an intergovernmental committee launched a large-scale security campaign targeting illegal crypto mining activities.
Kuwait enforced an absolute ban on all virtual asset/cryptocurrency mining activities in 2023, prompted by anti-money laundering directives. Residents in Kuwait pay 4.6 cents per kilowatt-hour of electricity, significantly less than the U.S. average of 16.44 cents. Despite cheap electricity, Kuwait urges residents to conserve energy as summer temperatures are forecast to exceed 52°C, straining the electrical grid.
Kuwait's electricity production reached 5,110 Gigawatt-hours in January 2025, according to CEIC Data. While crypto mining can strain electrical grids, advocates argue it can help stabilize them. A Cambridge Centre for Alternative Finance study shows sustainable energy sources for Bitcoin mining have grown to 52.4% in 2024, up from 37.6% in 2022.
This article is based on our author's analysis of materials taken from the following resources: Reuters, Kuwait Times, CEIC Data, and U.S. Energy Information Administration.