Unveiling the Crackdown on Cryptocurrency Mining in Kuwait's Scene
Unauthorized Cryptocurrency Mining Detected on 1,000 Websites: Kuwait Authorities Take Notice
** decode the buzz** The Kuwait Ministry of Interior has issued a stern warning against engaging in cryptocurrency mining, raising eyebrows after it was found that over a thousand locations throughout the Gulf nation are suspected of operating mining rigs.
Cryptocurrency mining has been forbidden in Kuwait since July 2023, with the Capital and Markets Authority issuing a blanket ban on all cryptocurrency activities, including transactions and trading.
Following the detection of unusual electricity usage patterns, the Ministry of Interior reemphasized this prohibition, labeling mining as an "unauthorized and illegal activity contrary to the nation's laws."
Kuwait boasts some of the lowest electricity prices in the world, and it appears that the attractive cost of energy is too alluring for some residents, with the authorities pointing out potential consequences.
As the Ministry writes, "this activity cause power outages in residential, commercial, and service areas, posing a risk to public safety and preventing the delivery of vital services."
The security department, responsible for policing and maintaining law and order, also urges violators to promptly rectify their actions, threatening penalties "in accordance with relevant statutes" for those who fail to comply.
The Ministry of Interior's warning is one of several joint efforts alongside several other governmental agencies, such as the Ministry of Electricity, Water and Renewable Energy, which has been successful in identifying unusually high electricity usage in 100 homes in the Al-Wafra region.
In the words of Ministry spokesperson Fatima Jawhar Hayat, the flagged homes exhibit consistent and abnormal energy consumption 24/7, which is an anomaly compared to usual household patterns.
"In certain instances, consumption surpassed 100,000 kilowatt-hours during March 2025, nearly twenty times the typical usage of neighboring homes," she said, hinting at potential cryptocurrency mining operations.
It remains unclear what measures, if any, have been taken against the occupants of the 100 identified homes. However, Hayat confirmed that the Ministry will continue monitoring electricity consumption throughout Kuwait.
According to the Cambridge Bitcoin Electricity Consumption Index, Kuwait accounted for 0.05% of Bitcoin's total hashrate in 2022, one year prior to its financial regulator banning cryptocurrency mining.
Although there is no current data available on Kuwaiti residents' cryptocurrency ownership post-2023 ban, evidence suggests that the Kuwaiti populace continues to invest in digital assets.
Recently, a fraudulent token known as Bitcoin Kuwait caused retail investors to lose an estimated $40 million, following a catastrophic price drop shortly after its launch in January.
This scandal was the subject of public complaints from researcher Dr. Safaa Zaman on X, who criticized the lack of enforcement of Kuwait's cryptocurrency ban and advocated for stronger legislation to support the government's stance on digital currencies.
She declared, "Where is the oversight, where is the legislation, and where is the criminal?"
Reviewed by Stacy Elliott.
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- The Kuwait Ministry of Interior has imposed a ban on crypto mining, which is still in operation since July 2023, prohibiting not only mining but also transactions and trading of cryptocurrency.
- The Ministry's warning against crypto mining was issued due to the detection of suspicious electricity usage patterns, labeling mining as an unauthorized and illegal activity contrary to the nation's laws.
- Kuwait, known for its low electricity prices, has become attractive for some residents engaging in crypto mining, despite the potential consequences it may bring.
- The Ministry of Interior reiterated that such activities can cause power outages and pose risks to public safety, urging violators to rectify their actions and face penalties as per the law.
- The Ministry of Electricity, Water and Renewable Energy has also been active in identifying unusual electricity usage, having detected 100 homes in Al-Wafra region with abnormal energy consumption.
- These 100 homes showed consistent high energy consumption 24/7, which the Ministry believes could be an indication of cryptocurrency mining operations.
- The Cambridge Bitcoin Electricity Consumption Index shows that Kuwait accounted for 0.05% of Bitcoin's total hashrate in 2022, before the ban on cryptocurrency mining was enforced.
- Although there are no recent data on Kuwaiti residents' cryptocurrency ownership post-2023 ban, incidents like the Bitcoin Kuwait scam suggest that the Kuwaiti populace still invest in digital assets.
- The Bitcoin Kuwait token scam led to an estimated $40 million in losses for retail investors, sparking public complaints and calls for stronger legislation to support the government's stance on digital currencies.
- Researcher Dr. Safaa Zaman criticized the lack of enforcement of Kuwait's cryptocurrency ban and advocated for stricter measures to combat digital currency-related crimes.
