Local media reports indicate that these investigations focus on the unauthorized use of electricity for mining operations across 59 residential properties, allegedly straining Kuwait’s power grid and contributing to widespread blackouts.
According to the Kuwait Times, the public prosecutor has pledged to impose severe legal consequences on those found guilty of violating regulations.
This latest enforcement effort comes two weeks after Kuwait’s Ministry of the Interior issued a warning about over 1,000 illicit crypto mining sites discovered across the country.
The ministry has labeled cryptocurrency mining as “an unlawful exploitation of electrical power” and a “direct threat to public safety.”
Following the warning, an intergovernmental committee initiated a large-scale security operation, led by the Ministry of the Interior’s Criminal Security Sector, targeting illegal crypto mining activities.
In 2023, Kuwait implemented a complete ban on all cryptocurrency mining, following directives from authorities responsible for overseeing the nation’s anti-money laundering efforts.
Crypto mining and electricity concerns
Kuwait residents benefit from relatively low electricity costs, estimated at 4.6 cents per kilowatt-hour, roughly four times cheaper than the U.S. residential average of 16.44 cents per kilowatt-hour.
According to CEIC Data, Kuwait’s electricity production reached 5,110 gigawatt-hours in January 2025.
Despite these lower costs, the government has urged citizens to conserve energy, as summer temperatures in Kuwait are expected to surpass 52°C, further straining the electrical grid.
While affordable electricity is attractive for crypto mining operations, Kuwait’s extreme climate poses challenges, as mining rigs typically require between 1,000 watts (1 kW) to 8 kW of power, based on a 2024 study from the U.S. Energy Information Administration.
While concerns about crypto mining’s impact on power grids persist, the industry has increasingly shifted toward sustainable energy solutions. Advocates argue that mining operations can help stabilize power grids, and a study from the Cambridge Centre for Alternative Finance shows that Bitcoin mining’s reliance on renewable energy has risen to 52.4%, up from 37.6% in 2022.
