Kuwait Government Issues Warning as 1,000 Sites Found Illegally Mining Cryptocurrency
The Kuwait Ministry of Interior has warned against cryptocurrency mining, citing over 1,000 locations suspected of operating mining rigs. Crypto mining has been illegal since July 2023, following a ban by the Capital and Markets Authority on all cryptocurrency activities. Abnormal electricity usage linked to mining has prompted the Ministry to reaffirm the ban, labeling it an “unlicensed activity” that violates national law. The low electricity prices in Kuwait have incentivized some residents to mine, causing power outages and threatening public safety. The Ministry has identified 100 homes in the Al-Wafra region with unusually high electricity consumption, with some exceeding 100,000 kilowatt-hours. The Ministry will continue monitoring electricity usage. Despite the ban, evidence suggests ongoing trading of digital assets, highlighted by a recent fraud involving a token called Bitcoin Kuwait, which resulted in $40 million in losses for investors. Calls for stronger enforcement and legislation against cryptocurrency activities have been made.
