Kuwait authorities have stepped up crackdowns against illegal codes Miningbegan investigating 31 cases, question 116.
Local media reports say the investigation involved illegally using electricity for crypto mining across 59 residential properties, which claimed that authorities put a strain on the national power grid and caused widespread power outages.
Quote at local news outlet Kuwait TimesThe prosecutor vowed to declare “stricken legal action” against anyone found to have violated the law.
The crackdown comes two weeks after Kuwait’s Home Ministry issued a warning citing the discovery of more than 1,000 illegal code mining sites in the country.
Crypto Mining said it constituted “illegal exploitation of electricity” and, as later cited on May 1, characterized it as poses a “direct threat to public safety.” Reuters Report.
Three days after the warning, the Intergovernmental Commission launched a massive security campaign conducted by the Department of Home Affairs’ Criminal Security, targeting illegal crypto mining activities.
In 2023, the country implemented an “absolute ban on all virtual assets/cryptocurrency mining activities,” sparked by an order from authorities overseeing the Gulf’s anti-money laundering initiative.
Crypto Mining Summer
The country’s residents’ access to electricity is estimated at a relatively cheap 4.6 cents per kilowatt-hour, approximately four times less than the US statewide housing average of 16.44 cents.
According to data from the economic analysis company CEIC data, Kuwait’s electricity production reached 5,110 gigawatt hours in January 2025.
Despite these factors, the Kuwait government is urging residents to minimize use and save energy, with summer temperatures in the region expected to exceed 52°C, straining the electrical grid.
According to a 2024 survey by the U.S. Energy Information Agency, electricity is cheap, but the country’s general climate does not encourage crypto mining rigs.
Crypto mining is just one factor in many of the impacts affecting the electrical grid, despite the industry’s gradual shift towards more sustainable practices. In fact, proponents of the practice argue that crypto mining actually helps stabilize the power grid, but a new study from the Alternative Finance Center at the Cambridge Centre shows that sustainable energy sources for Bitcoin mining have increased to 52.4% from 37.6% in 2022.
