Kuwait Cracks Down on Crypto Mining Amid Power Crisis

Kuwait has begun a large-scale crackdown on illegal cryptocurrency mining operations contributing to a severe power crisis. Authorities aim to reduce strain on the electricity grid ahead of the summer heat. The country's low electricity costs have attracted miners, exacerbating existing energy challenges.

Kuwait has initiated a significant crackdown on unauthorized cryptocurrency mining operations, which authorities claim are a primary factor behind an ongoing power crisis. This move comes as the government seeks to alleviate the stress on its electricity grid before the onset of the intense summer heat.

A nationwide security operation was launched last week, with the interior ministry describing cryptocurrency mining as an illegal activity that constitutes an unlawful exploitation of electrical power. This practice threatens to cause blackouts, impacting residential, commercial, and service areas, and poses a direct threat to public safety.

While cryptocurrency trading is banned, there are no specific laws addressing mining in Kuwait, an OPEC member grappling with a power crisis fueled by population growth, urban expansion, rising temperatures, and maintenance delays at some plants. Although crypto mining is a major contributor to the crisis, it is not the sole factor affecting the power grid, experts say.