Over 1,000 Sites Found Mining Cryptocurrency Illegally in Kuwait
KUWAIT CITY, April 22: The Ministry of Interior has issued a warning against unlicensed cryptocurrency mining activities in Kuwait, cautioning that such operations are in violation of national laws. Meanwhile, officials from the Ministry of Electricity, Water, and Renewable Energy have disclosed that over 1,000 locations across the country have been identified where individuals are actively engaged in cryptocurrency mining.
According to sources, cryptocurrency mining operations are significantly straining the power grid, with energy consumption at a single mining site reported to be 5 to 20 times higher than that of a typical household. The Ministry of Interior emphasized that cryptocurrency mining contravenes multiple legal provisions, including Law No. 56 of 1996 on Industrial Regulation, Law No. 31 of 1970 amending parts of the Penal Code, Law No. 37 of 2014 concerning the establishment of the Communications and Information Technology Regulatory Authority (CITRA), and Law No. 33 of 2016 governing the Kuwait Municipality.
The Ministry highlighted that such unauthorized mining activities place a heavy burden on the national electricity grid, increasing the risk of blackouts in residential, commercial, and essential service areas. This, they warned, could compromise public safety and disrupt critical infrastructure. This statement follows a coordinated effort involving the Ministry of Interior, the Ministry of Electricity, Water and Renewable Energy, CITRA, the Public Authority for Industry, and the Kuwait Municipality. Together, these bodies are working to curb illegal mining operations and mitigate their harmful effects on the nation's energy infrastructure.
Authorities have urged violators to immediately correct their status, warning that failure to comply will result in legal consequences, including referral to investigative authorities for prosecution in accordance with applicable laws. Additionally, sources revealed that some individuals are attempting to conceal their mining activities by shutting off household air conditioning units—devices that consume considerable electricity—to offset and mask the abnormal spike in power usage. This tactic, however, has not gone unnoticed, as authorities have traced unexplained surges in electricity consumption back to illegal mining setups.
Cryptocurrency mining is a resource-intensive process involving the decryption of digital currencies through a series of complex computational steps. It requires powerful hardware operating continuously around the clock, resulting in enormous electricity consumption and posing a growing concern for the nation's power supply stability.
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