Crypto Miners Blamed for Energy Strain
In a statement issued by the Kuwait Ministry of Electricity, Water and Renewable Energy, authorities confirmed that illegal and unlicensed mining farms have been discovered operating across various residential and industrial zones. These operations, often set up in secrecy, are consuming large amounts of electricity—much of it subsidized by the government—causing blackouts and power instability in surrounding areas.
“We are witnessing a dangerous surge in energy consumption that threatens national infrastructure,” said a ministry spokesperson. “Crypto mining is not only unregulated but has become an economic and environmental burden.”
Raids and Equipment Seizures
Government agencies have begun conducting raids on suspected mining sites, leading to the seizure of thousands of mining machines, including ASIC rigs used for Bitcoin and other proof-of-work cryptocurrencies. Several individuals have been detained for bypassing meters or illegally accessing subsidized electricity.
The ministry has also announced stricter monitoring of electricity usage in areas with unusually high consumption patterns, indicating more crackdowns may be coming.
Subsidies Add to the Problem
Electricity in Kuwait is heavily subsidized, with rates among the cheapest in the world. This makes the country an attractive location for crypto miners seeking low operational costs—but also means miners are benefiting from public resources, often without regulation or taxation.
Analysts say this situation has created a gray area where illegal mining operations thrive, particularly in residential zones where monitoring is weaker.
Growing Global Trend
Kuwait’s crackdown follows similar actions by other countries in the Middle East and Asia, including Iran, China, and Kazakhstan, where crypto mining has been blamed for overloading power grids and disrupting energy supplies. As global temperatures rise and demand for cooling increases, governments are under pressure to prioritize electricity for essential services over high-energy blockchain operations.
What’s Next?
Kuwait’s government has not issued a full ban on crypto mining but has signaled a shift toward stricter regulation, licensing, and enforcement. Lawmakers are now discussing frameworks that would allow licensed mining under specific energy caps or in designated industrial zones.
For now, the message from Kuwaiti authorities is clear: unregulated mining will no longer be tolerated—especially during an energy crisis.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should research carefully before making any decisions. We are not responsible for your investment decisions.
