Kuwait authorities have launched a sweeping crackdown on illegal cryptocurrency mining operations, blaming them for exacerbating the country’s power crisis.
KUWAIT CITY, May 3 Kuwait has intensified its crackdown on illegal cryptocurrency mining operations, targeting homes and facilities accused of overwhelming the national power grid ahead of peak summer demand.
Authorities conducted a high-profile security operation last week, raiding properties in Al-Wafrah, a hotspot for unauthorized mining activity. The electricity ministry reported a staggering 55% drop in energy consumption in the area following the raids, with some homes found using up to 20 times the normal power levels.
“They exploited weak oversight and subsidized electricity to run mining rigs at massive scale,” said Saud Al-Zaid, a former executive at Kuwait’s Communications and Information Technology Regulatory Authority. “This was never sustainable.”
Cryptocurrency mining, which requires vast amounts of electricity to solve complex algorithms, has drawn global scrutiny for straining energy infrastructure. While Kuwait accounts for a tiny fraction of global Bitcoin miningjust 0.05% in 2022, per Cambridge Universityits small grid makes even minor mining surges disruptive.
Alex de Vries-Gao of Digiconomist noted, “In a country like Kuwait, even a small cluster of miners can destabilize local power supplies.”
The shift falls in line with Kuwait’s carefully approach towards crypto, in contrast to other regional brethren such as the UAE which has been welcoming to digital assets. The central bank has repeatedly warned against crypto investments, citing financial risks.
With summer temperatures soaring, the government aims to prevent further blackouts by stamping out unauthorized miningsignaling no tolerance for energy abuses in the oil-rich nation.
Also read: Arizona Legislature Approves Bitcoin Reserve Bill for State Funds
Bitcoin, meanwhile, remains volatile, trading at $96,956 amid broader market fluctuations.
