Kuwait’s government is taking action against people who are using large amounts of electricity to mine cryptocurrencies like Bitcoin. With summer coming and temperatures getting hotter, the country is trying to prevent power outages by shutting down these mining operations.
Crypto Mining Is Causing Power Problems
The Ministry of Interior in Kuwait said they’ve started a major campaign to stop illegal crypto mining. They found that some people are turning their homes into mining centers. These setups use a lot of electricity — much more than a normal house — and that can cause blackouts in neighborhoods.
Officials say this is dangerous because it can affect homes, businesses, and even hospitals. It’s especially risky during summer when everyone uses more electricity for air conditioning.
Why Is Kuwait Facing a Power Shortage?
There are several reasons Kuwait’s electricity system is under pressure:
- The population is growing.
- More buildings are being built.
- Summers are getting hotter.
- Some power plants haven’t been properly maintained.
In one area called Al-Wafrah, about 100 houses were being used for crypto mining. The government is now focusing on this area to stop the problem.
Why Do Miners Come to Kuwait?
Electricity in Kuwait is very cheap because the government pays for most of it. That makes it attractive for crypto miners who need a lot of power for their machines. Some mining setups use 20 times more electricity than a regular home.
Miners want to earn money from crypto, and cheap electricity helps them make bigger profits. That’s why they choose places like Kuwait.
No Clear Laws About Mining
Even though trading cryptocurrency is banned in Kuwait, there are no clear rules about mining it. This has made it easier for miners to set up operations in a legal grey area.
Other countries have faced similar issues:
- Kosovo banned crypto mining in 2022 due to electricity shortages.
- Iran has shut down illegal mining sites to stop power cuts.
- Russia has also limited mining in some areas.
Crackdown Already Making a Difference
Since the crackdown started, the Ministry of Electricity said electricity use in Al-Wafrah dropped by 55%. That’s a big drop and shows that miners were using a lot of power.
Officials hope this will help avoid blackouts during the very hot summer months.
Kuwait vs. Its Neighbors
While Kuwait is trying to stop crypto mining, other places nearby are doing the opposite. For example, Dubai recently hosted a big crypto event that was even attended by Eric Trump, son of U.S. President Donald Trump. Dubai is trying to attract more crypto businesses.
Even though Kuwait only made up 0.05% of the world’s Bitcoin mining in 2022, experts say even a small amount of mining can have a big effect on a country with a smaller power system.
Alex de Vries-Gao, an expert who tracks crypto energy use, said:
“It doesn’t take much mining to put a lot of pressure on Kuwait’s electricity system.”
What’s Next?
With the weather heating up, the government is asking people to save electricity. They hope the crackdown on crypto miners will help keep the lights and air conditioners on across the country this summer.
