The Kuwait Ministry of Interior (MOI) has issued a statement that domestic crypto mining is illegal and unauthorized. Officials from Kuwait’s Ministry of Electricity, Water and Renewable Energy are noting that there are over 1,000 crypto mining sites across the country.
In a press conference released to X, the Department’s security relations and the general department of the media revealed that cryptocurrency mining violated several important laws, including the 1996 law number (56) related to the 1996 law number (31). Kuwait city.
The ministry said crypto mining could drain electricity, increase the load on electricity networks, and pose a threat to public safety.
The warning follows joint efforts with the Ministry of Home Affairs, the Ministry of Electricity, Water and Renewable Energy, the Bureau of Communications and Information Technology, the Public Industrial Agency, and the City of Kuwait. These efforts are part of a coordinated national initiative to address these illegal activities and reduce the negative impact on the country’s electricity infrastructure.
statement
kuwait pic.twitter.com/airwrn2d1v is prohibited from practicing cryptocurrency mining activities within the state– Ministry of Home Affairs (@moi_kuw) April 22, 2025
The Home Office urged offenders to quickly correct their activities, stressing that failure to comply will lead to necessary legal action. Violators will be referred to the appropriate investigator for further action in accordance with applicable law.
Cryptocurrency transactions and payments in Kuwait are also illegal
The Ministry of Finance does not recognize cryptocurrencies for the purposes of official commercial transactions. Similarly, the Kuwait Central Bank (CBK) prohibits the banking sector and businesses from managing transactions in cryptocurrency. The ban includes accepting the use of cryptocurrency in electronic benefits transactions and mediating between the parties with cryptocurrency transactions. (523) CBK asked the Commerce Department to warn consumers about the risks of cryptocurrencies such as Bitcoin.
Kuwait is one of the most affordable countries in crypto mining
In 2023, estimates call the country the most affordable place to mine Bitcoin (BTC) around the world. One summary suggested that mining costs in Kuwait were just $1,400 per BTC in 2022 compared to over $18,000 in Texas (Bitcoin was worth over $40,000 at the time).
Bitcoin mining consumes approximately 140,336 GWH per year, according to data collected by Best Brokers.
