Kuwait Restricts Crypto Mining to Curb Power Demand

Kuwait is taking nationwide action against cryptocurrency miners, according to Reuters, citing the activity as a cause of blackouts and strain on the power grid. Authorities launched the crackdown ahead of summer, anticipating temperatures will soar to 125°F.

Kuwait’s Ministry of Interior announced it is carrying out a “wide-ranging” security operation targeting residences suspected of cryptocurrency mining. The agency emphasized that crypto mining is illegal, following a 2023 ban by the Capital Markets Authority, which also prohibited crypto trading.

Crackdown in Al-Wafrah Leads to Major Drop in Energy Consumption

Authorities have focused the crackdown on residences in Kuwait’s southern Al-Wafrah region, where the local electricity ministry reported that about 100 homes are involved in crypto mining, consuming up to 20 times more electricity than average. Following the operation, energy usage in the area dropped by 55 percent, according to a government statement.

Cryptocurrency mining is widely recognized for demanding significant computing power and consuming large amounts of energy. Kuwait is not alone in cracking down on the practice—Russia has prohibited mining in multiple regions, Kosovo banned it in 2022, and Angola followed suit in 2024. Meanwhile, European nations like Iceland and Norway have imposed strict regulations on the industry due to energy shortages.

In Kuwait’s case, University of Cambridge researchers estimated that the country accounted for just 0.05% of global bitcoin mining in 2022. Despite this small share, Alex de Vries-Gao—founder of a crypto energy consumption research project—told Reuters that even a minor portion of the global mining network can significantly affect Kuwait’s relatively limited electricity usage.

Recent figures show that crypto mining consumes nearly 2.5% of the total electricity used in the United States—about half the energy consumed by the entire U.S. commercial sector. All that for digital coins that, in many cases, have limited real-world purchasing power.

Read the original article on: Engadget

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