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- Kuwait takes action against crypto mining to safeguard its power system because energy needs are increasing and supply is running low.
- Cheap electricity in Kuwait made it a hotspot for crypto mining, but energy concerns prompted new restrictions.
- Rising temperatures and population growth are straining Kuwait’s power grid, prompting action on energy-intensive crypto mining.
The government of Kuwait reinforced its monitoring of cryptocurrency mining facilities because these operations dangerously burden the national power network. On May 1, 2025, Kuwait announced its power crackdown due to electricity shortages and rising energy requirements. The government authority is investigating crypto mining operations by examining the activities of over 60 individuals who exploit Kuwait’s low electricity costs.
According to the Interior Ministry, these activities break the legal usage rules of the nation’s power supply system. The department warns that mining operations may create energy disruptions that affect residential living spaces as well as their commercial and public facilities. Law enforcement reminds citizens of the life dangers linked to these disruptions. The government implements this action to protect the national infrastructure against excessive loading.
Crypto Mining’s Energy Strain
Crypto miners choose to work in Kuwait due to the country’s availability of cheap electricity. The average electricity rate in Kuwait stands at 2.9 cents per kilowatt-hour, which offers subscribers a lower cost compared to other developed nations.
The affordable energy supply caused Kuwait to become a preferred location for mining operations, especially miners who use large amounts of energy to mine ‘proof-of-work’. The government now reviews its policies because crypto mining uses too much energy.
The country deals with regular power interruptions as part of its ongoing energy challenge. Kuwait’s power availability suffers directly from rising population numbers and severe heat conditions. The seasonal high temperatures between 32°C (90°F) and 39°C (102°F) in May put additional strain on the power grid operations. The heavy use of air conditioning in summer raises both energy needs and overall consumption levels.
Global Crypto Mining Restrictions
Despite being one of many energy-consuming activities, crypto mining supports a large part of the rising energy usage. Low electricity rates encouraged cryptocurrency miners to establish their operations in this region for lower operational expenses. In response to power concerns, Kuwait follows other nations like Russia and China in restricting crypto mining operations.
Several countries worldwide have implemented new government policies to restrict crypto mining. Russia and China took action to stop mining because it uses too much power. Energy crisis severity will push additional nations to control cryptocurrency mining from an environmental and infrastructure protection perspective.
