The Kuwait government initiated Handing over the miners of cryptocurrencies According to the Reuters report, accusing them of power shortages with summer just around the corner. Last week, the Ministry of the Interior announced a “broadly” safety campaign to houses that were transformed into mining centers.
Power grid under hefty load
Cryptocurrency mining operations “represent the illegal use of electricity” and can cause blackout The Kuwait authorities influence housing homes, commercial facilities and critical services. Operations “pose a direct threat to public security”, added the Ministry of the Interior in the announcement.
A deficiency of power in the Persian Gulf Country is due to many reasons: population growth, urbanization, increased temperatures and postponed maintenance in current power plants. The authorities focused on the southern sector of Al-Wafrah, where it is said that about 100 houses were used for mining operations.
Video: Kuwait pushes the Cave of Cryptocurrencies operating in the residential district#Kuwait #Cryptominning #Cryptocurrency https://t.co/uji7sh6tal
– Arab Times – Kuwait (@ABTIMESKUWAIT) April 25, 2025
Mining operations apply affordable electricity
According to earlier reports of the Ministry of Energy of the Ministry of Energy of the Ministry of Energy of the Ministry of Energy of the Ministry of Energy of the Ministry of Energy of the Ministry of Energy, the Ministry of the Ministry is required by ordinary homes, some of the al-Wafrah mining devices apply the average level of electricity as much as 20 times. Highly subsidized affordable electricity of the nation brought miners who hope to make great profits.
A rendering of a crypto mining operation. Image: Gemini Imagen.
Legal problem gray zone
Although Kuwait has prohibited trade in cryptocurrenciesThe nation lacks regulations regarding mining operations. This gap enabled miners to work in a legal abyss, even when the central bank warned against investing in cryptocurrencies.
Case illustrates how he is looking for cryptographic extraction of areas with low electricity costs. The same trends have been observed all over the world, leading nations from Kosovo to Russia to reduce mining in order to avoid power shortages.
Early results indicate a sturdy impact
The Ministry of Electricity has announced a 55% decrease in energy consumption in Al-Wafrah after last week’s repression surgery. This edged decline indicates that the repression was successful in the initial phases.
Kuwait’s cryptocurrency policy is clearly contrary to the policy of some of its neighbors. When Kuwait suppresses Mining, Dubai opened this week to a key cryptographic conference, together with Eric Trump, son of US President Donald Trump.
The University of Cambridge Research estimated that Kuwait was responsible for only 0.05% of the global Mining Bitcoin Experts say that in 2022, however, even this diminutive percentage can have a significant impact on the relatively diminutive Kuwait electric grid.
“It will take only a very small part of the general Bitcoin The mining network has a large impact on the relatively small general electrical use of Kuwait, “said Alex de Vries-Gao, co-founder of Digiconomist, a cryptographic energy tracker.
When Kuwaiti Summers heats up in the next few months, officials still ask citizens to reduce electricity consumption, expecting that the attachment of miners will avoid repeated power outages in the supply of electricity in the coming summer months.
A distinguished picture from Unsplash, TradingView chart
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