$BTC Authorities crack down on illegal cryptocurrency mining in Kuwait: Over 1,000 sites detected

April 23, 2025 164

While the Ministry of Interior has issued a warning against unlicensed cryptocurrency mining activities, official sources from the Ministry of Electricity, Water, and Renewable Energy have revealed the discovery of more than 1,000 sites where individuals are engaged in mining digital currencies.

Speaking to Al-Rai, ministry sources emphasized that cryptocurrency mining causes significantly higher electricity consumption—with power usage at a single mining site reaching up to 5 to 20 times that of a typical household.

The Ministry of Interior reaffirmed that cryptocurrency mining violates multiple national laws, including:

Law No. 56 of 1996 (Industrial Law)

Law No. 31 of 1970 (amendments to Penal Code No. 16 of 1960)

Law No. 37 of 2014 (establishment of the Communications and Information Technology Regulatory Authority)

Law No. 33 of 2016 (regarding the Kuwait Municipality)

The ministry stressed that the high electricity demands of mining operations place a heavy burden on the national grid, potentially leading to blackouts in residential, commercial, and service areas, posing risks to public safety and essential services.

This warning is part of a coordinated effort involving several government agencies, including the Ministry of Electricity, the Communications and IT Regulatory Authority, the Public Authority for Industry, and Kuwait Municipality, all working to combat illegal mining and protect the country’s energy infrastructure.

Authorities are urging violators to immediately cease operations and legalize their status, warning that failure to comply will result in legal action, including referral to the relevant investigative bodies.

Concealing Consumption

Sources noted that some individuals are turning off household air conditioning units to conceal their electricity use, redirecting the saved power to their mining rigs instead. Investigations were prompted by unusually high electricity usage in some homes and Facilities.