Kuwait cracks on illegal cryptocurrency mining

Local media reported that a severe warning against illegal cryptocurrency mining issued by the Ministry of Interior in Kuwait, which warns against violators to stop operations or face legal penalties.

According to the announcement issued on April 22, Crypto Mining is strictly prohibited under the Kuwait Law, which violates many regulations, which include the Penal Code, the Industry and Municipal Regulations Law.

This warning is an investigation at the country level that revealed more than 1,000 sites on suspicion of operating coding mining.

In a joint effort, the Ministry of Electricity, Water and Renewable Energy indicated that many homes in Wafra consume unusually high amounts of electricity, up to 20 times the use of typical electricity, which raises concerns about pressure on the national energy network.

The Capital Markets Authority has implemented the Battle of Kuwait’s blankets on the coded currency procedures, including mining, trade and transfers, in 2023. Despite this ban, mining continues, most likely due to the low electricity costs in Kuwait.

The authorities have highlighted that, according to the current laws, the violations in the mining of the coded currency illegally will be tried.

However, illegal cryptocurrencies and encryption trading are still active despite the ban, and some population are still participating in encryption trading, as shown in the Bitcoin Kuwait scandal, where the distinctive symbol gained traction between retailers before collapse, which led to the loss of $ 130 million in investor losses.

Read more: Pakistan turns into bitcoin miners to use excess power

Earlier, Pakistan planned to allocate part of the surplus electricity in bitcoin mining and artificial intelligence data centers.

Pakistan’s energy sector is struggling with challenges, including high electricity definitions and surplus generator. The rapid expansion of solar energy increased the complexity of the scene, as it turned more consumers into alternative energy sources to reduce high costs.

Bilal bin Sakib, CEO of the Council, told Reuters that the mining center has been completed based on the availability of extra energy in specific areas.