Kuwait’s government has started a Offensive in cryptocurrency miners Throughout the country, accusing them of scarcity of aggravating energy with the summer around the corner, according to a Reuters report. The Ministry of Interior declared last week a “broad” security campaign that is aimed at houses that have become mining centers.
Power network under severe tension
Cryptographic mining operations “represent an illegal exploitation of electrical energy” and can activate blackouts Impacting residential houses, commercial establishments and critical services, said Kuwaitis authorities. The operations “have a direct threat to public security,” added the Ministry of Interior in its announcement.
The shortage of energy in the Gulf country is the result of multiple causes: population increase, urbanization, increased temperatures and postponed maintenance in current power plants. The authorities have focused on the sector of southern Al-Wafrah, where it was said that around 100 houses were used for mining operations.
Video: Kuwait Bustts Crypto Miners’ Den Operando in Residential Area#Kuwait #Cryptominning #Cryptocurrency
– Times Arab – Kuwait (@arabtimeskuwait) April 25, 2025
Mining operations Exploitation of cheap electricity
Some of Al-Wafrah mining facilities use up to 20 times the average levels of electricity required by ordinary homes, according to previous reports made by the Ministry of Electricity. The highly subsidized cheap electricity of the nation has brought the miners who hope to obtain great profits.
A rendering of a crypto mining operation. Image: Gemini Imagen.
Legal Gray Area Fuel Problem
Although Kuwait has Prohibited cryptocurrency tradeThe nation lacks legislation that governs mining operations. This lagoon has allowed miners to work in a legal limbo, even when the Central Bank warned against investment in cryptocurrencies.
The case illustrates how cryptographic mining looks for areas with low electricity costs. The same world trends have been observed, Kosovo leaders to Russia to limit mining to avoid energy shortage.
Early results indicate a strong impact
The Ministry of Electricity announced a 55% decrease in energy consumption in Al-Wafrah after the repression operation of last week. This strong decrease indicates that repression has been successful in its initial phases.
Kuwait’s cryptocurrency policy is very disagree with that of some of its neighbors. While Kuwait suppresses mining, Dubai opened this week to a key cryptography conference, with Eric Trump, son of the president of the United States, Donald Trump, attending.
The research of the University of Cambridge estimated that Kuwait was responsible for only 0.05% of Global Bitcoin mining In 2022. However, even this small proportion can have an important effect on Kuwait’s relatively small electricity network, experts say.
“I would only take a very small proportion of the general Bitcoin The Minera Network will have a great influence on the relatively small general use of Kuwait, ”said Alex de Vries-Gao, co-founder of Digiconomist, a tracker of the use of cryptographic energy.
As Kuwaitis summers heat up in the coming months, officials continue to ask citizens to reduce electricity consumption, waiting for the repression of miners to avoid frequent power cuts during the hot summer months.
Unspash’s prominent image, TrainingView graphics
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