Crypto mining households experience power disruption due to Mew's regulatory clampdown
Cryptocurrency Mining Crackdown in Kuwait
The Ministry of Electricity, Water, and Renewable Energy has tightened its grip on homes involved in illegal cryptocurrency mining, teaming up with the Ministry of Interior to nab violators.
A popular daily, Al-Rai, revealed that authorities sniff out potential rogue miners by scrutinizing smart meter data, identifying unusual power consumption that far exceeds typical household use. Once confirmed, the offending homes' power supply is swiftly disconnected, followed by legal repercussions.
Crafty miners often maintain regular bill payments to dodge suspicions, yet forensic meter analysis reveals a consistent pattern of irregular, unusual power consumption that deviates from normal household habits.
Currently, judicial teams are keeping a watchful eye on homes in Sabah Al-Ahmad, with operations expanding to the Mutla'a area. In Al-Wafra, a slew of 100 homes exhibiting excessive, inconsistent power consumption were identified. Some even surpassed 100,000 kilowatts in March 2025, an eye-popping 20 times the average home consumption - a clear sign of unauthorized crypto-mining activities.
Ministry spokesperson Fatima Hayat acknowledged unusual power load spikes in numerous areas and underlined collaboration with the Communications and Information Technology Commission and the Ministry of Interior in tracking shady Internet activity related to mining.
Hayat also urged the public's cooperation, warning of strict, no-nonsense legal consequences for individuals or entities proven to leverage electricity for unlicensed activities, imperiling the national power grid's stability.
Surveillance measures include:
- Probing led by the Ministry of Interior
- Information from the Communications Authority
- Smart meter and power consumption data scrutiny
Some miners are reportedly mulling a move to neighboring countries that allow regulated mining at higher rates. A source hinted at Kuwait potentially reaping benefits by adopting a similar regulated framework rather than enforcing a total ban.
Kuwait's approach to illegal crypto mining weaves together legal penalties, infrastructure protection measures, and joint agency efforts:
Legal Prohibitions
Cryptocurrency mining is banned under multiple laws, including the Industry Law (No. 56/1996), Penal Code amendments (No. 31/1970), CITRA regulations (No. 37/2014), and Municipal Law (No. 33/2016). The Ministry of Interior deems mining as illegal due to licensing violations and unauthorized industrial activities [1][5].
Energy Infrastructure Concerns
The government emphasizes the strain on energy infrastructure caused by mining operations, as these:- Siphon electrical resources through their ravenous power demand- Overburden the power grid, potentially causing outages in residential and commercial zones- Risk public safety by interrupting essential services [1][3][5].
Inter-Ministry Collaboration
A cohesive national effort involves:1. Ministry of Interior – Enforces the ban and issues alerts [1][5].2. Ministry of Electricity, Water and Renewable Energy – Tackles power grid implications [1][5].3. CITRA – Governs digital infrastructure utilization [1].4. Public Authority for Industry – Monitors unauthorized industrial operations [5].5. Kuwait Municipality – Ensures compliance with zoning and municipal codes [5].
Authorities urge offenders to halt operations immediately, with non-compliance triggering legal prosecution [5]. This intensifies Kuwait’s 2023 sweeping ban on all cryptocurrency-related activities [4].
- In response to the strain on energy infrastructure caused by unauthorized cryptocurrency mining, the Ministry of Electricity, Water, and Renewable Energy, along with the Ministry of Interior, have been scrutinizing smart meter data to identify unusual power consumption.
- By 2025, some homes in Al-Wafra were found to be consuming over 100,000 kilowatts, an amount that is twenty times the average household consumption, raising concerns about illegal crypto-mining activities.
- The communications between the Ministry of Interior, the Ministry of Electricity, Water and Renewable Energy, and the Communications and Information Technology Commission are being leveraged to enforce legal penalties against those found to be using electricity for unlicensed activities that could imperil the national power grid's stability.
