Kuwait is toughening its crackdown on illegal cryptocurrency #mining, conducting raids and blocking sites to reduce the strain on the power grid caused by the energy crisis.
Kuwait is stepping up measures against cryptocurrency mining, declared illegal due to excessive strain on the national electricity grid. The Ministry of Interior, in conjunction with the Ministry of Electricity and the Communications Regulatory Authority, is conducting large-scale raids aimed at identifying miners. The operations, intensified in April-May 2025, have resulted in a significant reduction in energy consumption: in the Al-Wafra district, electricity consumption fell by 55% following the raids. Authorities cite a threat to public safety as mining exacerbates power outages in the heat wave.
Kuwait's attractiveness to miners is due to its subsidized #electricity rates of just $0.045 per kWh, making the country one of the most cost-effective for bitcoin mining. However, this has triggered a surge in illegal activity: authorities have identified more than 1,000 facilities, including residential buildings, where energy consumption was 20 times higher than the norm. The raids include searches, seizure of equipment and blocking of over 1,000 cryptocurrency sites. Violators face criminal and administrative penalties, including power cuts.
Although the raids have temporarily relieved the power grid, experts doubt the long-term effectiveness of a complete ban. Illegal mining can continue in a hidden form, fueled by cheap electricity. #Kuwait's strict anti-cryptocurrency policies, including a ban on #cryptocurrency trading and payments, could slow the development of blockchain technology. Authorities are focused on stabilizing the power supply, but without infrastructure upgrades, the conflict between mining and the country's energy needs is likely to persist.
