Kuwait Cracks Down on Illegal Cryptocurrency Mining, Warns of Prosecution

The Kuwait Ministry of Interior has issued a stern warning against cryptocurrency mining, following the detection of over 1,000 locations suspected of running mining rigs. This revelation comes after analyzing electricity usage data, which indicated unusually high consumption patterns.

Cryptocurrency mining has been prohibited in Kuwait since July 2023, when the Capital and Markets Authority issued a circular banning all cryptocurrency activities, including transfers and trading. The Ministry of Interior has reaffirmed this ban, emphasizing that mining is an "unlicensed activity and a direct violation of the country’s law."

Despite the ban, the relatively low cost of electricity in Kuwait has proven to be a significant enticement for some residents. The Ministry highlighted several negative consequences of illegal mining, including power outages in residential, commercial, and service areas. These outages pose a threat to public safety and disrupt the provision of essential services.

The Ministry of Interior, responsible for policing and public security, has called on violators to promptly rectify their actions. Failure to comply may result in prosecution in accordance with applicable laws. This warning is part of a joint effort involving several governmental agencies, including the Ministry of Electricity, Water and Renewable Energy, which has identified extremely high electricity usage in 100 homes in the Al-Wafra region.

According to the Ministry’s spokesperson, Fatima Jawhar Hayat, these homes display consistently and abnormally high electricity usage 24 hours a day, unlike the typical fluctuating patterns of residential consumption. In some cases, consumption exceeded 100,000 kilowatt-hours during March 2025—nearly 20 times the typical usage of neighboring homes.

Ask Aime: What is the impact of the Kuwait Ministry's warning against cryptocurrency mining on the energy sector and public safety?

While the fate of the occupants of the 100 identified homes remains unclear, Hayat stated that the Ministry will continue monitoring electricity consumption throughout Kuwait. The government's efforts to enforce the ban on cryptocurrency mining reflect its commitment to maintaining public safety and ensuring the stability of essential services.

Despite the ban, there is evidence that the Kuwaiti public continues to engage in cryptocurrency activities. Most recently, a fraudulent token called Bitcoin Kuwait resulted in retail investors losing around $40 million after it collapsed in price almost immediately after launching in January. This incident has raised concerns about the lack of enforcement of the ban and the need for stronger legislation to reinforce the government’s stance on cryptocurrency.

Researcher Dr. Safaa Zaman highlighted the issue on X, questioning the oversight and legislation surrounding cryptocurrency activities in Kuwait. She called for stricter measures to prevent fraud and enforce the ban, emphasizing the need for greater government intervention to protect the public from such risks.