Kuwait’s Ministry of Interior cracks down on illegal crypto mining, linking over 100 homes to abnormal electricity usage and identifying 1,000 suspected mining locations. Since July 2023, crypto mining has been illegal, following a ban by the Capital Markets Authority. Despite this, incidents of fraud, including a $40 million loss, highlight ongoing challenges in enforcement.
Kuwait is taking significant steps to address illegal cryptocurrency mining. The Ministry of Interior has issued a strong warning against these operations as it has come to light that over 100 homes in the country exhibit abnormal power consumption patterns linked to mining activities. This crackdown follows a disturbing trend where more than 1,000 locations suspected of mining have been identified, leading to increased scrutiny.
The Ministry stressed that crypto mining is illegal in Kuwait, a stance reiterated since July 2023 when the Capital Markets Authority completely banned all cryptocurrency activities. Alarm bells were raised when authorities noticed unusual spikes in electricity usage, contributing to power outages that have affected both residential areas and businesses. The impacts of these operations pose a risk to public safety, with essential services disrupted.
Low electricity prices in Kuwait have unfortunately made it a hotspot for mining, despite the blanket ban. In an effort to curb this, the Ministry of Electricity worked alongside the Interior to pinpoint homes in Al-Wafra that consume electricity rates as much as 20 times higher than usual.
Even with the mining prohibition, there are signs that Kuwaiti residents are still engaging in cryptocurrency activities. A notable example includes a significant $40 million loss related to a fraudulent Bitcoin token in January 2025. Following these events, calls for stricter regulations and more robust enforcement measures have intensified among public officials to tackle the growing issue of crypto-related fraud in the region.
