The Kuwaiti government has just issued a stern warning after discovering more than 1,000 locations illegally mining cryptocurrency, despite an outright ban on all crypto-related activities issued since July 2023. This development not only shows a portion of the population's disregard for the law but also highlights the potential risks from cryptocurrency mining to the energy system and public safety of this Gulf nation.
Comprehensive crypto ban in Kuwait.
In July 2023, the Capital Markets Authority issued a directive banning all activities related to cryptocurrencies, including mining, trading, and remittance. The reasons given include: preventing money laundering, protecting consumers, and preventing financial risks from unregulated digital assets.
However, after nearly a year, over 1,000 facilities are still quietly operating mining machines, taking advantage of some of the cheapest electricity prices in the world in Kuwait. This has prompted authorities to act quickly.
Electricity consumption data exposes illegal activities.
The Ministry of Home Affairs #Kuwait – the agency responsible for security and order – has detected mining points through unusual electricity consumption data, mainly high continuous consumption 24 hours a day, completely different from the normal electricity usage pattern of households.
Specifically, in the Al-Wafra area, 100 houses are suspected of mining cryptocurrency with consumption reaching up to 100,000 kilowatt-hours just in March 2025, nearly 20 times the average consumption of neighboring households.
Serious consequences: Power outages and threats to public security.
The Ministry of Home Affairs emphasizes that illegal exploitation not only violates the law but also causes power outages in residential, commercial, and service areas, disrupting normal operations and threatening public safety. This agency declares that it will closely coordinate with the Ministry of Electricity, Water, and Renewable Energy to thoroughly address the issue.
In the latest announcement, authorities warn that all violators must 'urgently rectify' their situation. If not, they will face criminal prosecution in accordance with the law.
Crypto still exists quietly in Kuwait after the ban.
Despite the official ban, some evidence shows that Kuwaiti citizens still quietly trade and invest in digital assets. Recently, the collapse of a counterfeit token named Bitcoin Kuwait caused retail investors to lose approximately 40 million USD, demonstrating a lack of control in enforcing the ban.
Researcher Dr. Safaa Zaman publicly criticized on social media, questioning the government's oversight responsibility and legal capacity to prevent fraud and protect citizens from financial risks associated with crypto.
Impact on the global crypto market and Binance users.
Although Kuwait accounted for only about 0.05% of the global hash rate of #Bitcoin before the ban, this event is an important reminder of the impact of crypto mining on energy infrastructure, especially in countries with low electricity prices.
For Binance users, the key lesson is to clearly understand the legal regulations in each country, avoiding participation in or supporting activities that may be considered illegal, especially mining coins or investing in unverified tokens in areas with clear bans.
Conclusion: Crypto is not for everyone, and not everywhere.
The situation in Kuwait is a clear testament to both the opportunities and risks that cryptocurrency brings. Exploiting cheap electricity for profit can lead to severe legal consequences, while also directly impacting infrastructure and community life.
⚠️ Risk Warning:
The cryptocurrency market always poses many risks, including legal, technical, and financial risks. Mining or trading in countries that ban crypto can lead to criminal prosecution or total asset loss. Investing in crypto should be done with caution and is not suitable for everyone.