Kuwait Steps Up Crypto Mining Fight, Calling It a Threat to Stability

The Kuwaiti government has once again emphasized its stance on cryptocurrency mining, calling it a serious threat to both public order and the functioning of the energy system. According to officials, uncontrolled electricity consumption by mining farms creates a serious burden on the power grid, especially in hot climates, where the use of air conditioners becomes vital.

The ban on mining in the country has been in effect since 2023, and now the authorities remind that violating the law threatens administrative or even criminal liability. The Ministry of Internal Affairs has been instructed to strengthen control over compliance with the ban and intensify measures against violators. Particular emphasis is placed on the fact that illegal mining rigs threaten the stability of the country's entire energy system, which makes them not just a violation, but a risk factor for national security.

Kuwait has long been considered an attractive region for miners in the Middle East. This was facilitated by low electricity prices due to government subsidies. For example, in April 2025, the cost of one kilowatt-hour in Kuwait was $0.045, while in the United States it was $0.1595. Thus, electricity in Kuwait is almost four times cheaper, which made the country one of the priority destinations for cryptocurrency transactions after Libya and Iran.

However, now the government is seeking to limit any activity related to virtual assets. Earlier, the Kuwait Capital Markets Authority (CMA) issued a circular completely banning not only mining, but also any transactions related to the issuance and circulation of cryptocurrencies in the country. This step is aimed at preventing financial risks, as well as protecting citizens from the instability associated with unregulated digital assets.

Kuwait is thus taking a tough stance on the crypto industry, strengthening both legal and technical measures to suppress unauthorized mining of digital currencies.