Kuwait is waging a sustained war on the cryptocurrency mining underworld, issuing its strongest warning to date to individuals and groups flagrantly violating the nation’s prohibitive stance. The growth of mining activities (illegal), as evidenced by the dangerously high spike in power consumption in more than a thousand suspected sites, has triggered a reaction by the government determined to protect public safety and the national energy grid. This focus highlights the state’s determination to keep all forms of cryptocurrency activities in the country (which have been banned since July 2023) compulsory.
Anomaly of Power Consumption: A Deadly Signature to Follow
The advanced patterns of electricity consumption posed a red flag to the Kuwaiti authorities. Further investigation aligned the irregular energy usage patterns with an expanding network of sophisticated cryptocurrency mining sites. These operations, which remain concealed, have transcended the concern, which is now of local, yet national, focus, resulting in the uncontrolled blackouts.
Essential public services may also take a major hit mid-operations, completely crippling these services and postponing many important daily tasks. The emerging order of these groups conflicts with the power infrastructure, which can be dangerous if agitated or provoked.
As the order surges, power grid stability is put under attack, restricted to its operational limits. Even now, these measures continuously push blackouts to disrupt both commercial and residential use and considerably increase the frequency of these disruptions. The Ministry of Interior mustered caution, flagging heavy, dire concern over the capabilities of uncontrolled blackouts.
An Exploitation of Cheap Electricity: A Profitable but Illegitimate Undertaking
Cryptocurrency mining operations have emerged as illegal but inviting opportunities, thanks to Kuwait’s sharply lower expenses for electricity. Despite all forms of cryptocurrency activities being banned since July 2023, with the Capital and Markets Authority’s market exodus (dubbed ‘the great market exodus’), the cheap power supply has encouraged a few individuals and organized groups to venture towards profit-eager geologimayaund (cryptocurrency generation) tasks.
In a bid to curb these illegal mining activities, the Ministry of Interior and the Ministry of Electricity have forged a robust cooperative partnership. To date, their combined investigative efforts have revealed over a hundred houses in the Al-Wafra region in the Kuwaiti suburbs alone that have sustained over twenty-fold compared to normal residential electricity consumption—utterly phenomenal power consumption.
This abnormal energy consumption has provided sufficient forensic evidence to ascertain the existence of highly sophisticated and large-scale illegal crypto mining operations within the country.
The Kuwait Case: Defiance Through Persistent Engagement
Regardless of the governmental attempts to stifle cryptocurrency-related activities and the risk of harsh legal consequences, certain Kuwaiti citizens seem unbothered and continue pursuing crypto-related activities. This steadfast passion was particularly highlighted in January 2025, when Kuwaiti citizens collectively lost $40 million due to the Bitcoin Kuwait token scam.
In light of this loss, along with the rampant growth of illegal mining activities, some political leaders have begun to demand a stricter enforcement of the ban. These proponents advocate for the proactive enactment of new laws aimed at mitigating fraudulent activities associated with cryptocurrency in Malaysia, as well as other crimes that undermine regional financial stability and public confidence in governance.
The government’s intensely defensive posture concerning illegal mining activity is being interpreted as a responsive retreat to these issues and, simultaneously, a reaffirming assertion of government control over the governance of the asset industry in Kuwait.
