Kuwait bans cryptocurrency mining amid energy crisis

Kuwait's Ministry of the Interior has announced a ban on cryptocurrency mining across the country, arguing that the energy-intensive process of mining digital currencies could threaten the stability of the electricity supply.

🔍 Reasons for the decision

For years, Kuwait has struggled with energy problems caused, among other things, by rapid urban development, rising temperatures and delays in power plant maintenance. The authorities noted that the activity of crypto mining farms, especially in the Al-Wafrah region, had led to excessive energy consumption - some households were using as much as 20 times more electricity than the national average.

Following an operation targeting illegal mining farms, energy consumption in southern Kuwait fell by 55%.

⚖️ Legal consequences

Although trading in cryptocurrencies has been banned in Kuwait since 2023, there had previously been no regulations covering the mining process itself. The authorities now treat crypto mining as an illegal use of electricity, which may lead to power outages and pose a threat to public safety.

🌍 Global context

Kuwait's decision is part of a broader trend of restricting crypto mining around the world. Similar steps were previously taken by, among others, China and Kosovo, also due to concerns about the stability of their energy systems.

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