Kuwait announces illegal cryptocurrency mining, amid the energy crisis campaign

What has just happened? Kuwait announced the “illegal and unlicensed” cryptocurrency mining as part of a wide campaign to reduce pressure on the tense energy network amid the worsening energy crisis. This steadfast position contrasts sharply with neighboring Dubai, which continues to embrace the encryption sector, which hosts a major international conference attended by prominent personalities.

Kuwait launched a comprehensive campaign for cryptocurrency mining, and blamed the activity for the exacerbation of the energy crisis that led to the power outage throughout the country with high temperatures and air conditioning highs. The Ministry of Interior announced last week that it had started a “large -scale” security operation targeting homes suspected of hosting encryption mining platforms, which officials described as illegal.

The ministry said: “These mining operations are illegal use of electric energy … and may lead to a break that affects residential and commercial areas and service, which poses a direct danger to public safety.”

The government campaign focused on the Al -Wafra area in southern Kuwait. The Ministry of Electricity stated that about 100 homes were used in mining, as some consume up to 20 times of the typical family electricity. After the raids, power consumption in Al -Wafrat decreased by 55 percent, according to a government statement.

Electricity in Kuwait is greatly supported and among the cheapest in the world, making the country an attractive destination for cryptocurrency workers who seek to increase profits to the maximum.

The energy network in Kuwait offers pressure from multiple sources, including rapid population growth, urban expansion, high temperatures and maintenance in power stations. Electricity is widely supported and is the cheapest in the world, making the country an attractive destination for encryption miners who seek to increase profits.

However, officials warn that unspecified energy consumption of mining platforms pushes the network beyond the capacity, which exacerbates the risk of power outages with the intensification of summer heat.

While the coded currency trade has been banned in Kuwait since 2023, the mining has been present in a legal gray area, with no specific legislation until recent government measures were taken.

The Ministry of Interior is now Declare The coding is “illegal and unlicensed”, and warned that violators will face legal penalties. The authorities have identified more than 1,000 suspected mining sites using abnormal electricity as a major indicator.

The campaign is coordinated at the highest levels, with Prime Minister Sheikh Fahd Al -Youssef and the Minister of Electricity, Dr. Sobai Al -Mukhaidim, who oversees the operations. More than 60 people are currently under investigation, and the Ministry of Electricity has begun to separate energy from real estate related to mining activities. Re -call is only allowed after clearing the Ministry of Interior.

Although the government asserts that mining is a “main” factor in the energy crisis, a source in the Electricity Ministry told Reuters that it is not the only reason. Researchers at the University of Cambridge estimated that Kuwait represented only 0.05 percent of the global bitcoin mining in 2022. However, Alex de Friz Gao, the founder of the Digiki world, told Reuters, “It is only a very small share of the total bitcoin mining network for a large impact on the relatively small total electricity in Coyette.”