Kuwait Intensifies Crackdown on Illegal Crypto Mining—116 Individuals Under Scrutiny
Kuwait’s authorities are doubling down on unauthorized crypto mining operations, dragging 116 suspects in for questioning. The move highlights the tightening noose around energy-intensive blockchain activities in the region.
Why now? With energy subsidies bleeding state coffers dry, Kuwait’s crackdown smells more like fiscal triage than regulatory zeal. Another case of governments chasing decentralized tech while traditional finance burns.
Crypto mining summer
Access to electricity for the country’s residents has been estimated as a relatively cheap 4.6 cents per kilowatt-hour, about four times less than the U.S. statewide residential average of 16.44 cents per kilowatt-hour.
Kuwait’s electricity production reached 5,110 Gigawatt-hours in January 2025, according to data from economic analytics firm CEIC Data.
Despite these factors, the Kuwaiti government has urged its residents to minimize usage and conserve energy, with summer temperatures in the region forecast to reach over 52°C, straining its electrical grid.
While electricity is cheap, the country’s general climate is not conducive to crypto mining rigs, which typically require between 1,000 watts (1 kW) to 8 kW of power, according to a 2024 study from the U.S. Energy Information Administration.
Crypto mining represents just one factor among many impacting on electrical grids, even as the industry gradually shifts toward more sustainable practices. Indeed, advocates for the practice argue that crypto mining can actually help to stabilize power grids, while a new study from the Cambridge Centre for Alternative Finance shows sustainable energy sources for Bitcoin mining has grown to 52.4%, up from 37.6% in 2022.
