As Kuwait braces for an intense summer, with temperatures expected to soar past 50°C, the government has launched a widespread crackdown on illegal cryptocurrency mining activities. Authorities are blaming mining operations for blackouts and increased pressure on the country’s already strained power infrastructure.
The Ministry of Interior announced that a large-scale security operation is underway, targeting residences suspected of secretly running crypto mining rigs. The move follows a nationwide ban on crypto trading and mining that was imposed in 2023 by Kuwait’s Capital Markets Authority.
A significant focus of the crackdown has been the Al-Wafrah region in southern Kuwait, where nearly 100 homes were reportedly operating crypto mining setups. These setups consumed nearly 20 times more electricity than the average household, leading to frequent disruptions. Since the crackdown began, power usage in the region has reportedly dropped by over 50%.
Cryptocurrency mining is notorious for its high energy consumption, and Kuwait isn’t the first nation to take a tough stance. Countries like Russia, Kosovo, Angola, and even European nations such as Iceland and Norway have either banned or heavily regulated crypto mining to protect their power infrastructure.
Despite Kuwait’s minimal contribution to the global crypto mining output — estimated at just 0.05% of global bitcoin mining in 2022 by Cambridge University researchers — the local impact has been substantial. Experts note that even a small share of global mining activity can significantly strain the limited electricity grid of a smaller country.
The rising global scrutiny around crypto energy use comes at a time when several nations are trying to balance technological advancements with sustainability. While the crypto boom continues, it’s becoming clear that the energy cost is one governments across the world are no longer willing to ignore.
Source: Reuters.com
