- Kuwait discovers 1,000 illegal crypto sites, threatens legal action.
- Cheap electricity fuels banned crypto mining despite strict regulations.
Kuwait has issued a serious warning to individuals and groups involved in illegal cryptocurrency mining. The Ministry of Interior requires all violators to stop operating immediately, or they will enforce strict legal prosecution. The Ministry of Interior issued this warning following investigations that identified more than 1,000 suspected mining sites across Kuwait.
Crypto Mining Declared Illegal Under Kuwaiti Law
The government authorities clarified that cryptocurrency mining operations are prohibited inside Kuwait. As per national regulations, this activity counts as unauthorized and stands in violation of national laws. The authorities clearly state that mining does not have any authorized permits under the current rules, and operating without permission constitutes a violation of the law.
Importantly, the power requirements of crypto mining stand as the most urgent problem in this discussion. These operations consume high volumes of power that put excessive strain on the country’s power grid system. The current power consumption harms the electrical systems in residential and commercial zones as well as service communities, resulting in numerous power interruptions. Public safety becomes vulnerable due to the consequences of these operations, alongside disruptions in vital service operations.
Various government bodies joined efforts to detect the existence of illicit mining operations. The Ministry of Interior collaborated with the Ministry of Electricity, Water, and Renewable Energy through the support of other regional authorities. The investigation revealed excessive power consumption in Al-Wafra, especially since specific homes were using their electricity 20 times beyond neighboring homes.
Because of this, the Ministry took action by requiring every entity performing mining activities to stop their operations right away. The government has established a limited timeframe for offenders to solve their power usage issues. The authorities require all parties to stop mining activities while they follow the national regulations. The refusal to comply with orders will lead to legal measures, which will send identical cases to the responsible authorities for additional action.
Low Electricity Costs Fuel Ongoing Crypto Mining in Kuwait
Kuwait had previously banned all crypto-related activities, including mining, trading, and transfers. The authorities implemented this measure to shield both the economy and public infrastructure. The government ban on illegal mining has not stopped these activities from persisting. Experts suggest that the affordable electricity rates in Kuwait attract individuals to participate in crypto mining operations.
Additionally, people continue to engage in cryptocurrency deals despite government restrictions in the country. The “Bitcoin Kuwait” token manufacturer managed to gain significant popularity in a short period before its sudden disappearance cost investors major financial losses. The reported losses reached more than 130 million local currency units because of this incident.
Future government policies in Kuwait will carefully target all unlawful activities connected to cryptocurrency. Currently, officials are actively developing enhanced regulations and surveillance systems to avoid additional infrastructure deterioration throughout the nation.
Lastly, the Kuwaiti administration views illegal crypto mining with extreme seriousness. Through joint efforts and clear warnings, authorities aim to protect the public and maintain stability. Unlicensed mining operations will face consequences because the authorities have declared strict opposition to unlicensed crypto activity.
