Kuwait Cracks Down on Cryptocurrency Miners, Accusing Them of Aggravating Power Shortages

The government of Kuwait has initiated a crackdown on cryptocurrency miners throughout the nation, accusing them of aggravating power shortages with summer just around the corner. By David Anders. Updated April 26, 2025.

The government of Kuwait is cracking down on cryptocurrency miners, who are being accused of worsening the country's power shortages with summer just around the corner, reports Reuters.

The interior ministry last week announced a “wide-ranging” security campaign targeting houses that have been converted into mining centers.

The crypto mining operations “represent an illegal exploitation of electric power” and can trigger blackouts impacting residential homes, commercial establishments, and critical services, Kuwaiti authorities said. The operations “present a direct threat to public safety,” the interior ministry added in its announcement.

The North Arabian Gulf nation has been battling a severe power shortage due to multiple factors, including a surging population, rapid urbanization, increased temperatures, and postponed maintenance at current power plants.

Authorities have been concentrating on the southern sector of Al-Wafrah, where around 100 houses are said to have been used for mining operations.

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Some of Al-Wfrah's mining facilities use as much as 20 times the average electricity levels that ordinary homes require, according to earlier reports by the ministry of electricity. The nation's highly subsidized cheap electricity has brought miners who are hoping to make a big profit.

While Kuwait has banned cryptocurrency trading, the country does not yet have any laws governing mining. This has allowed miners to operate in a legal gray area as the central bank has repeatedly warned against investing in cryptocurrencies.

The case highlights how crypto mining is seeking out areas with low electricity costs. The same trends have been noticed globally, leading nations from Kosovo to Russia to limit mining to avoid power shortages.

After last week's crackdown operation, the ministry of electricity announced a 55% decline in energy consumption in Al-Wafrah. This steep impact showcases the effectiveness of the crackdown in its initial phases.

Kuwait's cryptocurrency policy stands in stark contrast to that of some of its neighbors. As Kuwait cracks down on mining, Dubai is preparing for a key crypto conference this week, with Eric Trump, the son of US President Donald Trump, among the attendees.

University of Cambridge researchers estimated that Kuwait contributed only 0.05% of global bitcoin mining in 2022. However, even this small proportion can exert a significant effect on Kuwait's relatively small electrical grid, experts say.

“It would only take a very tiny proportion of the overall bitcoin mining network to have a large influence on the comparatively small overall electrical usage of Kuwait,” explained Alex de Vries-Gao, co-founder of Digiconomist, a tracker of crypto energy usage.

As the Kuwaiti summers heat up in the next few months, officials are urging citizens to reduce electricity consumption further. They are also expected to ramp up efforts to clamp down on miners in a bid to avoid frequent power outages during the hot summer months ahead.