- Kuwait has officially banned Bitcoin mining due to excessive energy consumption and multiple legal violations, warning operators to cease activities or face legal consequences.
- This move reinforces the country’s broader anti-crypto stance, contrasting sharply with other nations embracing mining as part of their economic and digital strategies.
Kuwait has officially joined the ranks of nations such as China, Egypt, and Algeria in imposing a ban on Bitcoin mining. Notably, the country is citing excessive power consumption and a series of legal violations.
The Ministry of Interior announced the crackdown on April 22, putting a limelight on the strain that unauthorized cryptocurrency mining operations place on the country’s power infrastructure and regulatory system.
In its statement, the Ministry pinpointed that Bitcoin mining is not only unsanctioned but also violates multiple national regulations, including Kuwait’s penal code, industrial laws, municipal rules, and communication and information technology frameworks.
The government strictly warned that anyone involved in such activities must halt operations immediately or face legal consequences.
According to the authorities, the surge in mining activity is leading to unsustainable energy consumption, posing risks to public 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 services
the statement read.
This recent enforcement builds upon Kuwait’s broader anti-crypto stance. In 2023, the country’s Capital Markets Authority issued a nationwide ban on various crypto-related activities, including investment and trading.
The latest warning is part of a joint initiative by the Ministry of Interior, the Ministry of Electricity, Water and Renewable Energy, and other regulatory bodies to strengthen the ban, curb infrastructure degradation, and promote responsible energy consumption.
While Kuwait intensifies its crackdown, other nations are taking a more open approach to crypto mining. El Salvador has pioneered the use of renewable energy for state-backed mining operations powered by volcanic energy. Russia has also legalized crypto mining and experienced a notable increase in domestic operations.
Similarly, countries like Belarus and Pakistan are exploring how to use excess electricity for mining as a means of boosting economic activity. In the United States, the political narrative is also shifting.
The Trump-led administration has expressed a strong interest in advancing America’s role in the global crypto space, advocating for regulatory clarity and supportive policies for the mining sector.
Kuwait’s ban signals a divergence in global strategies toward crypto. While some nations are embracing digital assets as part of their economic evolution, others, like Kuwait are focusing on preserving traditional infrastructure and maintaining regulatory order. As the debate over the environmental and economic impact of crypto mining continues, the international landscape is becoming increasingly divided between restriction and innovation.