Kuwait is intensifying efforts to shut down illegal cryptocurrency mining operations across the country. The move comes as energy use soars with the arrival of extreme summer temperatures.
Officials say the Kuwait crypto mining ban targets homes using large-scale equipment that drains massive amounts of electricity. The Ministry of Interior has launched a “wide-ranging” security operation focusing on the Al-Wafrah region.
Authorities say roughly 100 homes hosted mining setups, some consuming 20 times more electricity than a normal household. After raids began, energy use in the area dropped by 55 percent.
Kuwait’s Capital Markets Authority officially banned crypto mining in 2023. The government also prohibited cryptocurrency trading at that time. Despite the rules, underground mining has continued.
Now, with power grids under pressure, officials are cracking down. Temperatures could reach 125°F this summer, straining the country’s infrastructure even further.
Crypto mining is known to require vast computing power. That power comes at a steep energy cost. Although Kuwait accounted for just 0.05% of global Bitcoin mining in 2022, experts say the impact is still significant.
“It takes only a small portion of the global network to affect Kuwait’s total consumption,” said Alex de Vries-Gao, a crypto energy researcher.
The Kuwait crypto mining ban aligns with actions taken in other countries. Russia has already banned mining in certain regions. Kosovo outlawed the practice in 2022. Angola followed suit in 2024. Iceland and Norway have implemented strict regulations due to energy concerns.
In the U.S., crypto mining now accounts for 2.5% of total electricity consumption. That’s nearly half of what the entire commercial sector uses.
As temperatures rise and electricity becomes more valuable, the Kuwait crypto mining ban highlights the cost of chasing digital profits. Authorities plan to continue enforcement throughout the summer.
