As Kuwait's temperatures are forecasted to exceed 52°C this summer, the government is expanding a large-scale crackdown on illegal crypto mining activities, aiming to protect the national electricity system from collapse due to excessive exploitation.
Over 100 individuals have been interrogated, with dozens of locations under investigation.
According to the latest information, the authorities #Kuwait have conducted investigations into 31 cases related to the illegal use of electricity for cryptocurrency mining, while interrogating 116 individuals. The investigations focus on 59 residential areas suspected of implementing crypto mining systems without permits.
The abuse of cheap electricity to operate large mining rigs has been accused by authorities as the cause of widespread power outages in many areas. A prosecutor stated in local media that strict legal measures will be applied to any violations.
Cheap electricity, strict laws, and a threatening summer
With the residential electricity price at just 4.6 cents/kWh – four times cheaper than the average in the United States – Kuwait has long become an attractive destination for law-evading crypto miners. However, since 2023, the country has officially imposed a complete ban on all forms of cryptocurrency mining as part of its campaign against money laundering and to protect energy security.
In just the year 2025, Kuwait's electricity capacity exceeded 5,110 Gigawatt-hours in January alone. However, with the harsh climate and high consumption demands during the summer, the government has called on citizens to conserve energy to avoid overloading the national electricity system.
Crypto mining: threat or opportunity?
Although the Kuwaiti government views cryptocurrency mining as "illegal electricity exploitation" and "a direct threat to public safety," supporters argue that crypto mining can help stabilize the power grid if implemented properly and utilizing renewable energy. A study from the Cambridge Centre for Alternative Finance also shows that the proportion of sustainable energy used in the Bitcoin network increased from 37.6% (2022) to 52.4% (2024).
Contact with crypto and Binance users:
For Binance users, the lesson drawn from Kuwait's story is: compliance with legal regulations is a prerequisite when participating in mining or investing in crypto. While cheap electricity can create attractive opportunities, operating outside the law can lead to serious legal consequences. Binance always encourages users to approach digital assets transparently, legally, and safely in all markets.
Risk warning: Investing in cryptocurrency is a high-risk activity not suitable for everyone. Users should conduct thorough research and only invest capital they can afford to lose. Engaging in mining or using digital assets illegally may violate laws in many countries.
