Kuwait Steps Up Enforcement Against Illegal Crypto Mining: 116 Persons Under Arrest

Kuwait has stepped up its fight against illegal crypto mining. In a recent operation, authorities questioned 116 people in the investigation into 31 cases of electricity misuse for crypto mining. The phenomenon is taking place in 59 homes, where the government says the national electricity grid is under severe strain, leading to large-scale blackouts.

Strict measures in prospect

In an interview with the local newspaper Kuwait Times the prosecutor has stated that “severe legal action” will be taken against those who do not comply with the law. This action follows a warning from the Ministry of Internal Affairs, which recently discovered more than 1.000 illegal crypto mining sites in the country.

“Renewable energy seems to cause greater problems,” the ministry emphasizes. They have characterized crypto mining as “an unlawful exploitation of electrical energy” that also poses “a direct threat to public safety,” as stated in a report by Reuters of May 1. Just three days after the warning was issued, an intergovernmental committee launched an intensive campaign, led by the ministry's Criminal Security Sector.

Ban on virtual currencies

In 2023, an “absolute ban on all activities involving virtual assets and cryptocurrencies” was imposed in the country, driven by guidelines from authorities charged with combating money laundering.

The price of energy

At around 4,6 cents per kilowatt-hour, electricity costs in Kuwait are a fraction of the US average price, which is four times higher. In January 2025, the country's electricity production reached an impressive 5.110 gigawatt-hours, according to CEIC data Data.

Still, the population is being urged to use electricity efficiently, especially with summer approaching, when temperatures can reach over 52°C. While electricity costs are low, Kuwait’s overall climate does not seem to be conducive to crypto mining. Equipment typically requires between 1.000 and 8.000 watts, something for which the climate is not ideal, according to a study by the US Energy Information Administration.

Despite this, crypto mining is just one of many factors that affect the electricity grid. However, proponents of the practice argue that it can also contribute to the stability of the energy system. Notably, a recent study by the Cambridge Centre for Alternative Finance shows that it part renewable energy sources for Bitcoin mining has risen to 52,4%, up from 37,6% in 2022.

Considering the developments in the energy sector, it remains interesting to see how this demise of illegal practices will affect the future of both the energy market and crypto mining in Kuwait.

Frequently Asked Questions

What is the reason for the recent actions of the Kuwaiti authorities?
Authorities are investigating illegal crypto mining, which involves unauthorized use of electricity in homes, causing strains on the national electricity grid.

How much do Kuwait residents pay for electricity?
Kuwaiti residents pay just 4,6 cents per kilowatt hour, which is significantly less than the US average of 16,44 cents.

What are the implications of crypto mining in Kuwait?
The government views crypto mining as a threat to public safety, which has led to strict bans and a call for conscious energy consumption, especially with the extreme summer temperatures approaching.