Kuwait’s government has launched a major crackdown on illegal crypto mining, targeting over 1,000 sites suspected of draining the nation’s electricity. The Ministry of Interior, alongside other agencies, swooped in after spotting massive power usage spikes, with some homes consuming up to 20 times the normal amount.
Kuwait Moves to Save Power
The operation saw the Ministry of Interior join forces with the Ministry of Electricity, Water, and Renewable Energy, alongside the Kuwait Municipality. Using data on unusually high power consumption, officials identified and raided suspected mining sites. Police seized mining equipment and took control of several properties, with top leaders including the Acting Prime Minister and the Minister of Electricity overseeing the effort.
As part of the crackdown, electricity was cut off to homes and buildings involved in illegal mining. The government stated that power would only be restored with approval from the Ministry of Interior. Around 60 individuals are under investigation, with some detained and others released on bail. Authorities uncovered large, unexplained bank deposits linked to the suspects, further tying them to the illegal operations.
Regulatory Challenges and Global Reactions
Kuwait’s power grid struggles with underinvestment, reliance on fossil fuels, and rising demand from intense heat waves. Subsidized electricity encourages wasteful consumption, which complicates efforts to curb illegal mining. The government faces the challenge of enforcing the crypto ban, as miners hide in residential areas, masking their usage by shutting off appliances.
Globally, other nations have acted similarly. In 2023, China banned crypto mining to ease power shortages, shutting down major operations like Bitmain. Iran, facing grid strain, halted licensed mining in 2022, confiscating thousands of rigs. These cases highlight the balance between energy security and crypto’s demands.
Kuwait’s crackdown reveals its commitment to safeguarding its power grid and enforcing strict crypto laws. As the nation battles energy woes, illegal mining remains a persistent threat. Other countries have also woken up to a similar situation. For example, in August 2024, Thai authorities launched a raid on an illegal Bitcoin mining operation in Ratchaburi, a province in central Thailand, west of Bangkok, linked to frequent power outages for over a month.
This marked the fourth time this year that officials have raided an unauthorized Bitcoin mining operation in Ratchaburi province. On the other hand, Pakistan is taking a new step to make use of its extra electricity by using it for Bitcoin mining and artificial intelligence (AI) data centers. This idea seeks to help the country stop wasting energy, earn more money, and grow its digital economy.
