As Kuwait braces for extreme summer temperatures, the government has intensified efforts to address its growing energy crisis by targeting cryptocurrency miners. The Kuwait crypto mining crackdown began in late April. It focuses on homes and facilities exploiting subsidized electricity for illegal mining operations.
According to the Ministry of Interior, cryptocurrency mining constitutes “unlawful exploitation of electrical power.” Moreover, it contributes directly to widespread power outages. The government warned that the strain from crypto farms poses a “direct threat to public safety.” This is particularly concerning as demand for cooling systems surges in the summer heat.
Kuwait’s power grid is under immense pressure, driven by rapid population growth, urban development, and delays in plant maintenance. While crypto mining is not the sole cause of the crisis, a source from the Ministry of Electricity confirmed it remains a major contributor.
The Kuwait crypto mining crackdown has centered on Wafra, a southern area where authorities identified around 100 homes using excessive amounts of electricity. Some households reportedly consumed up to 20 times the average usage. Following the raids, energy consumption in Wafra dropped by 55 percent, according to a ministry statement issued last weekend.
Kuwait has outlawed cryptocurrency trading since 2023. However, the legal framework around mining remains unclear. “They saw government subsidies, a lack of oversight, and no laws in place—so they exploited the situation,” said Saud Al-Zaid, a former board member at the Communications and Information Technology Regulatory Authority.
The energy-intensive nature of crypto mining has prompted several nations, from Russia to Kosovo, to impose restrictions. Researchers at the University of Cambridge estimated Kuwait accounted for just 0.05% of global bitcoin mining in 2022. However, even small operations can burden a fragile power grid.
Despite global interest in crypto, Kuwait remains cautious. The Central Bank has warned against crypto investments, diverging from neighboring countries like the UAE. In contrast, the UAE continues to host major blockchain events. Just last week, Dubai welcomed high-profile figures—including Eric Trump—at a large crypto summit.
The Kuwait crypto mining crackdown highlights growing concerns about balancing energy sustainability with emerging technologies in the Gulf region.
