Kuwait Cracks Down on Illegal Crypto Mining, Identifies 1,000 Suspected Sites

Kuwait has intensified its efforts to combat illegal cryptocurrency mining, issuing a stern warning after identifying over 1,000 sites suspected of engaging in such activities. The Ministry of Interior, in collaboration with the Ministry of Electricity, Water, and Renewable Energy, detected these sites through abnormal electricity usage patterns, with some homes consuming up to 20 times the typical electricity usage. This unusual consumption has raised concerns about the strain on the national power grid, which could lead to power outages and other disruptions.

The warning comes as a reminder that crypto mining has been strictly prohibited in Kuwait since July 2023, under the Penal Code, Industry Law, and municipal regulations. The Capital Markets Authority implemented a blanket prohibition on all cryptocurrency activities, including mining, trading, and transfers, in 2023. Despite these regulations, illegal mining continues, likely due to Kuwait's low electricity costs, which make it an attractive location for such activities.

The Ministry of Interior has cautioned violators to cease operations immediately or face legal penalties. Authorities have emphasized that under existing laws, those found engaging in illegal cryptocurrency mining will be prosecuted. The discovery of these sites underscores the challenges faced by Kuwait in enforcing its ban on cryptocurrency activities.

The government's efforts to curb illegal mining are part of a broader strategy to protect the national power grid and ensure the stability of the electricity supply. The Ministry of Electricity, Water, and Renewable Energy has indicated that the high electricity consumption by these sites is placing an unsustainable burden on the grid, which could lead to power outages and other disruptions.

The warning also serves as a reminder to residents and businesses that engaging in illegal cryptocurrency activities is not only against the law but also poses significant risks to the national infrastructure. The government's crackdown on illegal mining is expected to continue, with authorities remaining vigilant in their efforts to enforce the ban and protect the national power grid.

Kuwait's government has made it clear that it views illegal crypto mining with extreme seriousness. Through joint efforts and clear warnings, authorities aim to protect the public and maintain stability. Unlicensed mining operations will face consequences because the authorities have declared strict opposition to unlicensed crypto activity. The government is actively developing enhanced regulations and surveillance systems to avoid additional infrastructure deterioration throughout the nation.