Kuwait tightens reins on crypto mining amid energy crisis
Kuwait City, May 2, 2025 — The Kuwaiti government has launched a massive crackdown on cryptocurrency mining against the backdrop of the deepening power crisis and frequent blackouts in the country. Kuwait, once one of the cheapest bitcoin mining hubs, is now taking strict measures towards ending the practice, which officials consider a major burden on the national power supply.
On May 1, Kuwait’s Ministry of Interior launched a major campaign against illegal crypto mining sites, investigating more than 60 people. The ministry said these types of activities are “illegal use of electric power” and can lead to “outages in residential, commercial and service sectors, posing a direct threat to public safety.”
The move comes at a time when Kuwait is facing an acute energy crisis, caused by a rapidly growing population, urban expansion and constantly rising temperatures, which often reach 39°C (102°F) in May. These conditions have led to a huge reliance on air conditioning, causing electricity demand to peak.
Electricity is highly subsidized in Kuwait — at just 2.9 cents per kilowatt-hour — making the country one of the most attractive places in the world for crypto mining. But this cheap electricity is now putting unbearable pressure on the country’s energy system.
In July 2023, Kuwait’s Capital Markets Authority issued a circular imposing a complete ban on crypto mining, as well as the use of cryptocurrencies in payments and investments. The move was taken in compliance with international standards, particularly the recommendations of the Financial Action Task Force (FATF) to combat money laundering and terrorist financing.
The government has also warned citizens that cryptocurrencies are not legally recognized and are not backed by any government or financial institution.
The effects of this campaign are also beginning to emerge. In the southern region of Al-Wafra, which was previously considered a stronghold of crypto mining, electricity consumption fell by 55%. Investigations found that some households were using 20 times more electricity than the average.
Kuwait has now joined the list of countries like Russia and China, which have banned crypto mining due to energy crisis or environmental reasons. In contrast, neighboring countries like the United Arab Emirates are promoting crypto and blockchain technology, where Dubai has emerged as an emerging crypto hub.
As Kuwait tries to deal with its energy crisis, this tough stance of the government indicates that it is also ready to take tough measures on emerging digital sectors like crypto mining to curb high power consumption.
