Kuwait cracks down on energy-draining crypto mining
The Kuwaiti Ministry of Internal Affairs has banned cryptocurrency mining in the country because the energy-intensive process can threaten the stability of electricity supply. A large-scale operation is underway targeting homes used for cryptocurrency mining.
Cryptocurrency mining—a computing process requiring advanced equipment and significant energy inputs— "constitute an unlawful exploitation of electrical power ... and may cause outages affecting residential, commercial and service areas, posing a direct threat to public safety," said the ministry in a special communiqué.
Kuwait has banned cryptocurrency mining
The actions of the Kuwaiti Ministry of Internal Affairs primarily focused on the southernmost part of the country, where the Ministry of Energy had previously identified approximately 100 homes engaged in cryptocurrency mining. In some buildings, electricity consumption was reported to be up to 20 times higher than average. According to data from the ministry, after the initial operation, energy consumption in the southern part of Kuwait decreased by 55%.
In this country located on the Persian Gulf, there is a ban on cryptocurrency trading, but until now, there were no restrictions on mining. In recent years, authorities have struggled with an energy crisis caused by factors such as urban expansion due to a population boom, rising temperatures, and neglect in the national energy system.
The Kuwaiti authorities continue to appeal to residents to conserve energy, ensuring there is enough for cooling during the summer.
