The city authorities in Kuwait, named Al-Wafra, have banned crypto mining. As a result, energy consumption has decreased by 55%.
The authorities in Kuwait believe that mining farms are involved in a 'major' energy crisis.
The OPEC member country is struggling with a severe energy crisis caused by population growth, urban expansion, rising temperatures, and delays in maintenance at some power plants.
Cryptocurrency trading is banned in this country, but this does not directly apply to mining.
However, the Ministry of Interior considers this to be 'illegal exploitation of electricity, which can cause disruptions in residential, commercial, and service areas, posing a direct threat to public safety.'
The Al-Wafra government conducted a mass raid on about 100 homes where mining farms could be located. Some of these households consumed 20 times more electricity than the average Kuwaiti home.
Why miners choose Kuwait
Kuwait is a small, oil-rich country in the Middle East where electricity is cheap. Because of this, it has become an attractive region for crypto miners.
However, urbanization has led to crypto mining beginning to compete with the household needs of residents and other businesses for electricity.
