Kuwait Cracks Down on Crypto Miners Amid Blackouts and Power Crisis
Kuwaiti authorities have launched a major crackdown on illegal cryptocurrency mining, blaming it as a significant contributor to the country's worsening power crisis.
With summer temperatures set to soar, the government is racing to stabilize its strained electrical grid before widespread blackouts become the norm.
The Ministry of Interior said in a statement last week that it began a sweeping security operation targeting homes illegally used for crypto mining, calling the activity a “direct threat to public safety.” Officials noted that mining operations—particularly Bitcoin—consume extreme levels of electricity and may trigger outages in residential, commercial, and service areas.
Although Kuwait has banned cryptocurrency trading, there are currently no specific laws that prohibit mining. However, the government says miners are unlawfully exploiting the country’s heavily subsidized power—among the cheapest in the world—while many plants suffer from maintenance delays, rapid urban growth, and increasing demand.
One hotspot is the southern region of Al-Wafrah, where authorities found around 100 homes allegedly used for mining, with some consuming up to 20 times the normal electricity levels. Following the raids, energy usage in the area reportedly dropped by 55%.
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While crypto mining accounts for only a fraction of global activity—Kuwait was responsible for just 0.05% of the world’s Bitcoin mining in 2022, according to Cambridge University—its impact on the country’s smaller power grid can still be outsized. Experts like Digiconomist founder Alex de Vries-Gao warn that even modest mining activity can stress fragile energy systems.
Kuwait joins a growing list of countries taking action against crypto mining amid energy concerns, following similar restrictions in places like Russia and Kosovo.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
