Kuwait Bans Bitcoin Mining, Citing Power Strain and Legal Violations

Kuwait’s Ministry of Interior has officially banned Bitcoin mining, citing the strain it places on the national power grid and its noncompliance with multiple local regulations.In a statement released on April 22, authorities emphasized that cryptocurrency mining is illegal in the country and violates several laws—including Kuwait’s penal code, communications and IT legislation, industrial guidelines, and municipal ordinances.Officials warned that mining operations not only consume excessive electricity but also pose risks to public infrastructure and safety.“The Ministry asserts that cryptocurrency mining leads to excessive consumption of electrical energy, which increases the load on the public grid and may lead to power outages affecting residential, commercial, and service areas, posing a threat to public safety and the regular provision of essential service.”The government of Kuwait urged anyone participating in mining to halt operations immediately or face legal repercussions.This announcement reinforces Kuwait’s broader stance on crypto, following a 2023 decision by the Capital Markets Authority that banned various digital asset activities. This latest move is a collaborative effort involving the Ministry of Interior, the Ministry of Electricity, Water and Renewable Energy, and other regulatory bodies—all aiming to protect infrastructure and encourage responsible energy use.While Kuwait doubles down on crypto mining restrictions, several other nations are welcoming the industry as part of their digital economic strategies.El Salvador, for example, has built state-run mining facilities powered by volcanic energy. Russia, despite regulatory hurdles, has legalized mining and seen increased activity. Countries like Belarus and Pakistan are exploring ways to monetize surplus electricity through mining initiatives.Meanwhile, in the U.S., the Trump-led administration has expressed growing interest in leading the global crypto race. Recent statements from policymakers reflect a shift toward regulatory clarity that favors mining operations.