Once regarded as one of the least expensive nations in the world to mine Bitcoin, Kuwait has recently adopted a strong opposition to crypto mining, citing its rising energy use and worsening energy problems.
Authorities launched a national campaign to identify and halt illegal mining operations on May 1. Kuwait’s Ministry of Interior claims that more than 60 people are currently under investigation for allegedly operating illicit crypto mining operations in their homes.
Crypto Mining Accused of Power Grid Strain
The government characterized these activities as a “misuse of electrical power” that could cause outages in homes, businesses, and vital services. Officials claim that illegal power use directly compromises public safety. This most recent crackdown mirrors a broader global trend. Particularly those depending on proof-of-work systems like Bitcoin, crypto miners are under increasing criticism for their high energy usage.
Crypto Miners Flock to Kuwait
Rising temperatures and rapid population growth are putting increasing pressure on Kuwait’s energy system. Average highs in May range from 32°C (90°F) to 39°C (102°F), resulting in extensive air conditioning use. Regular blackouts all throughout the nation result from this increase in demand for electricity. Kuwait, ironically, is also among the most reasonably priced energy sources available worldwide. With just 2.9 cents per kilowatt-hour for electricity, the nation has long attracted crypto miners seeking to reduce operating expenses.
Kuwait Joins Mining Crackdown
Although cryptocurrency mining is not the primary cause of Kuwait’s energy problems, the government’s choice reflects those adopted by other low-cost energy countries. China outlawed crypto mining in line with its green energy targets, while Russia imposed limits in response to grid stability issues. The thread running through all is that Countries providing inexpensive power are progressively preferring grid reliability above the financial benefits of hosting mining activities.
Crypto Mining Faces Energy Crackdown
Countries like Kuwait may continue to tighten rules on crypto mining as energy needs increase and sustainability constraints intensify. For the sector, this presents continuous challenges, as it now has to balance long-term viability against energy costs.
