Kuwait Bans Bitcoin Mining Due to Energy Strain
- Kuwait enforces a ban on cryptocurrency mining due to energy concerns.
- Authorities identified and shut down over 1,000 illegal sites.
- Ban follows FATF compliance and national security interests.
Kuwait’s Ministry of Interior banned cryptocurrency mining on April 22, 2025, citing legal breaches and the strain on the country’s energy infrastructure.
The move addresses energy consumption issues and aligns with Kuwait’s past restrictions, impacting Bitcoin and Ethereum activities locally.
Kuwait Shuts Down 1,000+ Illicit Mining Sites
Kuwait’s authorities enforced a ban on cryptocurrency mining, citing energy strain and legal violations. The decision impacts over 1,000 illicit mining sites discovered nationwide.
The Ministry of Interior, Ministry of Electricity, and CITRA led the effort, emphasizing detrimental effects on the power grid and non-compliance with national laws. “Cryptocurrency mining in Kuwait is illegal and unlicensed. The practice violates several national laws and severely strains the country’s power infrastructure. This step is part of a national initiative… to address illegal activities and safeguard public resources.” — Kuwait Ministry of Interior, Official Statement
Mining Ban Tackles Power Grid Concerns
The ban halts all crypto mining activities, addressing concerns over the national power grid’s capacity. The action may prompt miners to relocate to nations with lenient regulations.
Financial institutions must also comply with the ban, affecting investments and transactions involving Bitcoin, Ethereum, and other virtual currencies legally.
GCC Energy Risks: Kuwait’s Strategic Ban
The prohibition aligns with other GCC countries’ actions due to similar energy and financial crime risks. Previous measures have shown varying impacts on markets.
Experts suggest the ban could disrupt local hash rate contributions and lead to changes in cryptocurrency liquidity and national energy usage patterns.
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