Kuwait has launched a nationwide crackdown on cryptocurrency mining operations, citing excessive electricity consumption and growing concerns over nationwide blackouts. The campaign, initiated on May 1, is part of an urgent effort to address the country’s ongoing energy strain, particularly as high temperatures push demand to seasonal highs.
Over 60 Suspected Miners Under Investigation
According to Kuwait’s Interior Ministry, the operation targeted residential locations where crypto mining was allegedly taking place. Local media reports indicate that authorities are investigating more than 60 individuals accused of engaging in unauthorized mining activities.
In a statement, the ministry said such operations constitute an illegal exploitation of electrical resources and pose a direct threat to public safety, citing risks of blackouts in residential, commercial, and service areas.
Rising Energy Demand Collides with Cheap Power
Kuwait’s move comes amid recurring power outages, driven by population growth, infrastructure stress, and high summer temperatures—often exceeding 39°C (102°F) in May. The country’s dependence on air conditioning makes it particularly vulnerable to surges in electricity demand.
Notably, Kuwait has some of the cheapest electricity rates in the world, with power priced at just 2.9 cents per kilowatt-hour, significantly below the global average. This low cost has made the country a hotspot for crypto mining, especially for operations using proof-of-work algorithms like Bitcoin.
Following Global Trends: Russia, China Also Restrict Mining
Kuwait is the latest in a growing list of nations to target crypto miners over energy concerns. Russia has also issued bans on mining in certain regions, citing stress on local grids. China, once the global hub for Bitcoin mining, imposed a blanket ban in 2021 as part of its green energy transition and efforts to reduce carbon emissions. While crypto mining isn’t solely responsible for Kuwait’s rising energy consumption, the government is treating it as a high-priority issue due to its intensive and constant power requirements.
