Kuwait government has initiated a Cryptocurrency miners Throughout the country, they accused them of aggravating the lack of power with the summer just around the corner, according to a Reuters report. Last week, the Ministry of the Interior explained a “comprehensive” security campaign aimed at houses that have been converted into mining centers.
Power nets under severe load
Crypto -mining business “represents an illegal exploitation of electric power” and may trigger Blackouts The influence of residential buildings, commercial facilities and critical services, Kuwaitian authorities said. The business “poses a direct threat to public security,” the Ministry of the Interior added in its announcement.
The shortage of power in the Gulf country is a result of several reasons: a population increase, urbanization, increased temperatures and shot maintenance at current power plants. The authorities have focused on the southern sector in Al-Wafrah, where about 100 houses are said to be used for mining operations.
Video: Kuwait Busts Crypto Miners’ the one working in the residential area#Kuwait #Cryptominning #Cryptocurrency https://t.co/uji7sh6tal
– Arab Times – Kuwait (@Arabtimeskuwait) April 25, 2025
Mining operations utilize cheap electricity
Some of Al-Wafrah’s mining facilities use as much as 20 times the average electricity levels that ordinary homes require, according to previous reports from the ElminiSiet. The nation’s highly subsidized cheap electricity has aroused miners who hope to make big profits.
A rendering of a crypto mining operation. Image: Gemini Imagen.
Legally gray area fuel problems
Although Kuwait has prohibited Cryptocurrency tradeThe nation lacks legislation that regulates the mining operations. This loophole has enabled miners to work in a legal limbo even when the central bank warned to invest in Cryptocurrencies.
The case illustrates how crypto mining looks for areas with low electricity costs. The same trends have been observed globally, leading countries from Kosovo to Russia to limit mining to avoid lack of power.
Early results indicate strong impact
The Ministry of Electricity announced a reduction in energy consumption of 55% in al-Wafrah after last week’s degradation operation. This steep decline indicates that the degradation has been successful in its original phases.
Kuwaits Cryptocurrency is strong in violation of it for some of its neighbors. When Kuwait suppresses mining, Dubai opened this week to a key crunch conference, with Eric Trump, son of US President Donald Trump, presence.
University of Cambridge Research estimated that Kuwait was liable for only 0.05% of global Bitcoin mining In 2022. Nevertheless, even this small proportion may have a great effect on Kuwait’s relatively small electrical grid, says experts.
“It would only take a very small part of the overall bitcoin Dining networks to have a great influence on the relatively small overall electrical use of Kuwait, ”said Alex de Vries-Gao, co-founder of Digionomist, a tracker of crypto energy use.
When Kuwaitian summers are heated in the coming months, officials continue to ask citizens to reduce electricity consumption and expect that the degradation of miners often avoid power outages during the hot summer months ahead.
Image from Unsplash, charts from TradingView
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