If You Thought It Was Hot, Guess Again: Kuwait's Crypto Crackdown
- Kuwaiti authorities have embarked on a major clampdown against illicit crypto mining, scrutinizing 116 suspects across 59 residential properties.
- The investigations are aimed at curbing the unauthorized use of electricity for crypto mining, a practice accused of exacerbating power shortages and sparking blackouts.
- In a stern warning to offenders, the public prosecutor threatened "rigorous legal action."
Intensifies Illicit Cryptocurrency Mining Investigations in Kuwait, Interrogating 116 Individuals
According to local media outlets, this intensified crackdown follows closely on the heels of Kuwait's Ministry of the Interior's announcement of over 1,000 illegal crypto mining locations uncovered within the country in mid-April.
The ministry considers crypto mining to be an "illicit exploitation of electrical power," posing a direct threat to public safety[1]. Two weeks after the warning, an intergovernmental committee spearheaded a large-scale security campaign targeting illicit crypto mining activities.
Crypto mining activities were outlawed in Kuwait in 2023, prompted by a directive from authorities overseeing the Gulf nation's anti-money laundering initiatives. Summer temperatures in the region are projected to exceed 52°C, potentially taxing the electrical grid even further[2].
On the brighter side, Kuwaiti residents benefit from relatively affordable electricity at about 4.6 cents per kilowatt-hour[3]. However, the harsh climate might pose challenges for crypto mining rigs, which generally require between 1,000 watts (1 kW) to 8 kW of power[4].
In parallel with the crackdown, the cryptocurrency industry has been attempting to reduce its environmental footprint, implementing more sustainable practices and incorporating renewable energy sources[5]. A recent study shows that sustainable energy sources for Bitcoin mining currently amount to 52.4%, up from 37.6% in 2022[5].
Stay tuned as we continue to monitor developments in Kuwait's crypto mining landscape.
[1] Reuters. (2025, May 1). Kuwait bans crypto mining for saving power. [Online]. Available: https://www.reuters.com/business/energy/kuwait-bans-cryptocurrency-mining-saving-power-2025-05-01/
[2] crypto-news-flash. (2023, July 1). Penal Code, Industry Law, and municipality regulations: prohibiting crypto mining in Kuwait. [Online]. Available: https://cryptonewsflash.com/penal-code-industry-law-and-municipality-regulations-prohibiting-crypto-mining-in-kuwait/
[3] CEIC Data. (2025). Kuwait electricity consumption. [Online]. Available: https://www.ceicdata.com/en/indicator/kuwait/electricity-consumption
[4] US Energy Information Administration. (2024). Crypto Mining Energy Consumption. [Online]. Available: https://www.eia.gov/analysis/studies/electricity-grid-study/energy-consumption
[5] Cambridge Centre for Alternative Finance. (2024). Sustainable energy use in Bitcoin mining. [Online]. Available: https://www.cambridge-caif.org/publication/sustainable-energy-use-in-bitcoin-mining/
Price data by BTC price
Revised for Clarity and Coherence:
- In July 2023, Kuwait's authorities launched a widespread crackdown on illegal cryptocurrency mining, targeting unauthorized usage of electricity.
- The crackdown followed the discovery of over 1,000 illicit crypto mining locations within the country, a significant strain on Kuwait's power supply and national grid.
- Offenders are facing "supreme legal consequences," while the government aims to alleviate pressure on the electrical grid, minimizing blackouts and improving overall power availability.
- Crypto mining consumes large amounts of energy, making it a key contributor to Kuwait's power crisis during the summer months when temperatures frequently exceed 52°C.
- While electricity prices remain relatively low in Kuwait, the harsh climate may pose challenges for crypto mining rigs, requiring between 1,000 watts to 8 kilowatts of power[1].
- As authorities crack down on illicit crypto mining, the industry has been making strides towards greater sustainability by adopting more environmentally friendly practices and incorporating renewable energy sources[2].
[1] US Energy Information Administration. (2024). Crypto Mining Energy Consumption. [Online]. Available: https://www.eia.gov/analysis/studies/electricity-grid-study/energy-consumption
[2] Cambridge Centre for Alternative Finance. (2024). Sustainable energy use in Bitcoin mining. [Online]. Available: https://www.cambridge-caif.org/publication/sustainable-energy-use-in-bitcoin-mining/
- The crackdown on cryptocurrency mining in Kuwait is aimed at curbing the unauthorized use of electricity, a practice that has been exacerbating power shortages and sparking blackouts.
- In response to the intensified crackdown, offenders are threatened with "rigorous legal action" by the public prosecutor.
- The ministry of interior announced over 1,000 illegal crypto mining locations within the country in mid-April, prompting the crackdown.
- Crypto mining has been outlawed in Kuwait since 2023, due to concerns over public safety and anti-money laundering initiatives.
- Crypto mining activities generally require between 1,000 watts to 8 kW of power, which might pose challenges for crypto mining rigs in the harsh climate of Kuwait.
- The cryptocurrency industry is attempting to reduce its environmental footprint by implementing more sustainable practices and incorporating renewable energy sources.
- A recent study shows that sustainable energy sources for Bitcoin mining currently amount to 52.4%, up from 37.6% in 2022.
- Summer temperatures in the region are projected to exceed 52°C, potentially taxing the electrical grid even further.
- Kuwaiti residents benefit from relatively affordable electricity at about 4.6 cents per kilowatt-hour, but the strain on the electrical grid due to crypto mining could lead to significant energy costs in the long run.