A government crackdown on crypto mining operations in Al-Wafrah has triggered a major energy shift. Within a week of the Kuwait crypto mining crackdown, local electricity usage dropped by 55 percent.
Officials say the raids came as Kuwait faces a worsening energy crisis. Scorching summer heat has driven up demand for air conditioning. Simultaneously, delays in power plant maintenance are limiting supply.
Authorities allege that illegal mining operations are overloading the grid. While cryptocurrency trading is banned in Kuwait, mining remains a legal gray area.
Nonetheless, the interior ministry described mining as an “unlawful exploitation of electrical power.” Officials warned that it threatens public safety and stability. The Kuwait crypto mining crackdown involved nearly 100 home raids. Investigators found setups using over 20 times the average household electricity.
These underground mining operations are raising serious alarms. Mining Bitcoin is an energy-heavy process. One transaction can consume more than 1,000 kilowatt-hours of power. That equals a month’s electricity use for a U.S. home.
Experts say even minimal mining can destabilize a small energy market. “It only takes a small share of global mining to affect Kuwait,” said Digiconomist founder Alex de Vries-Gao.
Despite comprising less than 0.5% of global mining in 2022, Kuwaiti operations still strain the local grid. This power strain has already caused blackouts in residential and commercial areas.
Kuwaiti authorities remain firm on enforcement. They warn that violations may cause wider outages and compromise essential services. The Kuwait crypto mining crackdown will continue as officials push to protect national infrastructure.
This incident underscores the tension between digital innovation and energy sustainability. For now, the Kuwait crypto mining crackdown reflects growing global concerns about crypto’s impact on public utilities.
