Kuwait cracks down on illegal crypto mining operations
Over 100 homes in Kuwait identified with abnormal power consumption linked to crypto mining.
The Kuwait Ministry of Interior has issued a stern warning against cryptocurrency mining. It follows a rise in electricity usage linked to over 1,000 suspected mining locations across the country.
The Ministry has reiterated that crypto mining remains illegal. Its position has been enforced since July 2023, when the Capital and Markets Authority banned all cryptocurrency activities.
Authorities raised alarms after detecting unusual electricity consumption patterns, which have led to power outages in residential and commercial areas. The Ministry expressed concerns over public safety, highlighting the disruptions to essential services caused by the mining activities.
Kuwait’s low electricity prices have made the country an attractive location for mining operations, despite the legal ban. In collaboration with the Ministry of Electricity, the Interior identified over 100 homes in Al-Wafra with power consumption up to 20 times higher than normal.
Despite the mining ban, Kuwaitis continue engaging in crypto activities, as shown by a $40 million loss in January 2025 from the fraudulent Bitcoin Kuwait token. Public figures have called for stricter enforcement and further legislative action to prevent crypto-related fraud in the region.
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