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Yahoo
03-05-2025
- Business
- Yahoo
Energy use in a Kuwaiti city fell by over 50% after authorities cracked down on crypto mining
When you buy through links on our articles, Future and its syndication partners may earn a commission. Authorities in Al-Wafrah, Kuwait, cracked down on alleged crypto miners in the city, which resulted in a 55% decrease in power consumption the following week. According to Reuters, Kuwait is in a power crisis as summer temperatures are soaring. Its growing number of citizens are pushing the power grid to keep cool while some power plants are experiencing maintenance delays. Kuwaiti authorities allege that cryptocurrency miners are pushing power demand beyond the country's capacity, leading to blackouts and a "major" power crisis. Cryptocurrency trading is illegal in Kuwait, but mining is not explicitly banned. Nevertheless, the government's interior ministry said it "constitutes an unlawful exploitation of electrical power…and may cause outages affecting residential, commercial, and service areas, posing a direct threat to public safety." The government raid covered about 100 homes suspected of hosting crypto mining operations, with some using more than 20 times the electricity consumption of the average Kuwaiti home. Crypto mining is a power-intensive activity, with one Bitcoin transaction consuming more than 1,047 kWh of electricity — about the same amount of power that the average U.S. household uses in over a month. Researchers estimated that Kuwaiti miners were responsible for less than half a percent of global mining activities in 2022. However, Digiconomist founder Alex de Vries-Gao told Reuters, "It only takes a very small share of the total bitcoin mining network to have a significant impact on the relatively small total electricity consumption of Kuwait." Kuwait is a small, oil-rich country in the Middle East, where electricity is affordable, probably because of its low fuel costs. Because of this, it's become an attractive area for crypto miners, as power consumption is one of the biggest costs of their operation. However, Kuwait's limited power reserves and expanding urban area mean these operations compete against residents and other businesses for electricity. Given that the authorities ban cryptocurrency trading, it makes sense for them to also crack down on mining operations. This incident highlights the increasing power demands of high-powered computing. And while crypto mining might be setting records in power consumption, AI data centers are the bigger threat to our electricity supply. Meta founder Mark Zuckerberg says that limitations in our power grid will constrain AI growth, with Meta and other companies turning to nuclear reactors to provide the electricity their massive data centers need. And even if there's enough power to be had, they also cause reduced power quality in nearby residential areas, reducing the lifespan of electrical appliances in our homes. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.
Zawya
01-05-2025
- Business
- Zawya
Kuwait cracks down on cryptocurrency mining amid power crisis
Kuwait has launched a crackdown on cryptocurrency miners it accuses of being a "major" cause of a power crisis that has led to blackouts, as authorities seek to ease pressure on the grid before the start of a sweltering summer. Authorities started a "wide-ranging" security operation last week, the interior ministry said in a statement, targeting homes used for cryptocurrency mining, an activity it said was illegal. Crypto mining activities "constitute an unlawful exploitation of electrical power … and may cause outages affecting residential, commercial and service areas, posing a direct threat to public safety", the ministry said. Kuwait has banned cryptocurrency trading but has no laws specifically addressing mining. OPEC member Kuwait is grappling with a severe power crisis driven by population growth, urban expansion, rising temperatures and delayed maintenance at some plants. Electricity in the country is extremely cheap and the government has urged residents not to waste it as the need to keep cool amid sweltering summer temperatures heaps pressure on a strained electrical grid. Cryptocurrency mining, although a major cause of the power crisis, is not the only factor, a source at the electricity ministry told Reuters. Mining for crypto uses vast amounts of computing power and has prompted authorities from Kosovo to Russia to curb its use to prevent electricity shortages. The miners tend to base themselves where power is cheap, and often in colder climes where it is easier to cool their servers. Researchers at the University of Cambridge estimated that in 2022, Kuwait was responsible for just 0.05% of the world's bitcoin mining at the time. While there is no good data on how much power crypto miners use in Kuwait, "it only takes a very small share of the total bitcoin mining network to have significant impact on the relatively small total electricity consumption of Kuwait," said Alex de Vries-Gao, founder of Digiconomist, a research project tracking crypto's energy use. Kuwait's crackdown has targeted homes in Al-Wafrah, Kuwait's southernmost area, where the electricity ministry has previously said around 100 homes were used for mining, some of them consuming up to 20 times normal electricity levels. Energy consumption in Al-Wafrah fell by 55% following last week's operation, the electricity ministry said in a statement on Saturday. "They saw government subsidies, saw the absence of oversight, and saw no laws in place, so they exploited the situation to their benefit," said Saud Al-Zaid, who formerly served as executive board member of the Communications and Information Technology Regulatory Authority in Kuwait. Kuwait's central bank has warned against investing in crypto. The country's approach to the sector differs to that of some of its neighbours which have embraced the industry. Dubai this week is playing host to a large crypto event, with Eric Trump, U.S. President Donald Trump's son, among those in attendance. (Reporting by Ahmed Hagagy; Additional reporting by Elizabeth Howcroft; Writing by Yousef Saba; Editing by Tommy Reggiori Wilkes and Freya Whitworth)
Yahoo
01-05-2025
- Business
- Yahoo
Kuwait cracks down on cryptocurrency mining amid power crisis
By Ahmed Hagagy KUWAIT (Reuters) -Kuwait has launched a crackdown on cryptocurrency miners it accuses of being a "major" cause of a power crisis that has led to blackouts, as authorities seek to ease pressure on the grid before the start of a sweltering summer. Authorities started a "wide-ranging" security operation last week, the interior ministry said in a statement, targeting homes used for cryptocurrency mining, an activity it said was illegal. Crypto mining activities "constitute an unlawful exploitation of electrical power … and may cause outages affecting residential, commercial and service areas, posing a direct threat to public safety", the ministry said. Kuwait has banned cryptocurrency trading but has no laws specifically addressing mining. OPEC member Kuwait is grappling with a severe power crisis driven by population growth, urban expansion, rising temperatures and delayed maintenance at some plants. Electricity in the country is extremely cheap and the government has urged residents not to waste it as the need to keep cool amid sweltering summer temperatures heaps pressure on a strained electrical grid. Cryptocurrency mining, although a major cause of the power crisis, is not the only factor, a source at the electricity ministry told Reuters. Mining for crypto uses vast amounts of computing power and has prompted authorities from Kosovo to Russia to curb its use to prevent electricity shortages. The miners tend to base themselves where power is cheap, and often in colder climes where it is easier to cool their servers. Researchers at the University of Cambridge estimated that in 2022, Kuwait was responsible for just 0.05% of the world's bitcoin mining at the time. While there is no good data on how much power crypto miners use in Kuwait, "it only takes a very small share of the total bitcoin mining network to have significant impact on the relatively small total electricity consumption of Kuwait," said Alex de Vries-Gao, founder of Digiconomist, a research project tracking crypto's energy use. Kuwait's crackdown has targeted homes in Al-Wafrah, Kuwait's southernmost area, where the electricity ministry has previously said around 100 homes were used for mining, some of them consuming up to 20 times normal electricity levels. Energy consumption in Al-Wafrah fell by 55% following last week's operation, the electricity ministry said in a statement on Saturday. "They saw government subsidies, saw the absence of oversight, and saw no laws in place, so they exploited the situation to their benefit," said Saud Al-Zaid, who formerly served as executive board member of the Communications and Information Technology Regulatory Authority in Kuwait. Kuwait's central bank has warned against investing in crypto. The country's approach to the sector differs to that of some of its neighbours which have embraced the industry. Dubai this week is playing host to a large crypto event, with Eric Trump, U.S. President Donald Trump's son, among those in attendance.
Economic Times
01-05-2025
- Business
- Economic Times
Kuwait cracks down on cryptocurrency mining amid power crisis
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Kuwait has launched a crackdown on cryptocurrency miners it accuses of being a "major" cause of a power crisis that has led to blackouts, as authorities seek to ease pressure on the grid before the start of a sweltering started a "wide-ranging" security operation last week, the interior ministry said in a statement, targeting homes used for cryptocurrency mining, an activity it said was mining activities "constitute an unlawful exploitation of electrical power ... and may cause outages affecting residential, commercial and service areas, posing a direct threat to public safety", the ministry has banned cryptocurrency trading but has no laws specifically addressing member Kuwait is grappling with a severe power crisis driven by population growth, urban expansion, rising temperatures and delayed maintenance at some in the country is extremely cheap and the government has urged residents not to waste it as the need to keep cool amid sweltering summer temperatures heaps pressure on a strained electrical mining, although a major cause of the power crisis, is not the only factor, a source at the electricity ministry told for crypto uses vast amounts of computing power and has prompted authorities from Kosovo to Russia to curb its use to prevent electricity shortages. The miners tend to base themselves where power is cheap, and often in colder climes where it is easier to cool their at the University of Cambridge estimated that in 2022, Kuwait was responsible for just 0.05% of the world's bitcoin mining at the there is no good data on how much power crypto miners use in Kuwait, "it only takes a very small share of the total bitcoin mining network to have significant impact on the relatively small total electricity consumption of Kuwait," said Alex de Vries-Gao, founder of Digiconomist, a research project tracking crypto's energy crackdown has targeted homes in Al-Wafrah, Kuwait's southernmost area, where the electricity ministry has previously said around 100 homes were used for mining, some of them consuming up to 20 times normal electricity levels. Energy consumption in Al-Wafrah fell by 55% following last week's operation, the electricity ministry said in a statement on Saturday."They saw government subsidies, saw the absence of oversight, and saw no laws in place, so they exploited the situation to their benefit," said Saud Al-Zaid, who formerly served as executive board member of the Communications and Information Technology Regulatory Authority in central bank has warned against investing in crypto. The country's approach to the sector differs to that of some of its neighbours which have embraced the this week is playing host to a large crypto event, with Eric Trump, U.S. President Donald Trump 's son, among those in attendance.
The Star
01-05-2025
- Business
- The Star
Kuwait cracks down on cryptocurrency mining amid power crisis
An aerial view taken with a drone shows Kuwait Telecommunication Tower and the surrounding in Kuwait City, Kuwait City, Kuwait October 7, 2020. REUTERS/Stephanie McGehee KUWAIT (Reuters) -Kuwait has launched a crackdown on cryptocurrency miners it accuses of being a "major" cause of a power crisis that has led to blackouts, as authorities seek to ease pressure on the grid before the start of a sweltering summer. Authorities started a "wide-ranging" security operation last week, the interior ministry said in a statement, targeting homes used for cryptocurrency mining, an activity it said was illegal. Crypto mining activities "constitute an unlawful exploitation of electrical power … and may cause outages affecting residential, commercial and service areas, posing a direct threat to public safety", the ministry said. Kuwait has banned cryptocurrency trading but has no laws specifically addressing mining. OPEC member Kuwait is grappling with a severe power crisis driven by population growth, urban expansion, rising temperatures and delayed maintenance at some plants. Electricity in the country is extremely cheap and the government has urged residents not to waste it as the need to keep cool amid sweltering summer temperatures heaps pressure on a strained electrical grid. Cryptocurrency mining, althougha major cause of the power crisis, is not the only factor, a source at the electricity ministry told Reuters. Mining for crypto uses vast amounts of computing power and has prompted authorities from Kosovo to Russia to curb its use to prevent electricity shortages. The miners tend to base themselves where power is cheap, and often in colder climes where it is easier to cool their servers. Researchers at the University of Cambridge estimated that in 2022, Kuwait was responsible for just 0.05% of the world's bitcoin mining at the time. While there is no good data on how much power crypto miners use in Kuwait, "it only takes a very small share of the total bitcoin mining network to have significant impact on the relatively small total electricity consumption of Kuwait," said Alex de Vries-Gao, founder of Digiconomist, a research project tracking crypto's energy use. Kuwait's crackdown has targeted homes in Al-Wafrah, Kuwait's southernmost area, where the electricity ministry has previously said around 100 homes were used for mining, some of them consuming up to 20 times normal electricity levels. Energy consumption in Al-Wafrah fell by 55% following last week's operation, the electricity ministry said in a statement on Saturday. "They saw government subsidies, saw the absence of oversight, and saw no laws in place, so they exploited the situation to their benefit," said Saud Al-Zaid, whoformerly served as executive board member of the Communications and Information Technology Regulatory Authority in Kuwait. Kuwait's central bank has warned against investing in crypto. The country's approach to the sector differs to that of some of its neighbours which have embraced the industry. Dubai this week is playing host to a large crypto event, with Eric Trump, U.S. President Donald Trump's son, among those in attendance. (Reporting by Ahmed Hagagy; Additional reporting by Elizabeth Howcroft; Writing by Yousef Saba; Editing by Tommy Reggiori Wilkes and Freya Whitworth)
