24-4-2025 – Kuwait has outlawed digital currency mining across the nation, marking a significant shift in the Gulf state’s approach to the burgeoning crypto sector.
The landmark declaration, issued by Kuwait’s Interior Ministry on 22 April, stems from mounting concerns over the severe strain these mining operations have placed on the country’s electrical infrastructure. The decision draws authority from an extensive legislative framework, encompassing decades of Kuwaiti law, including crucial amendments to the 1970 Penal Code and more recent statutes governing industrial and municipal regulations.
The unprecedented surge in power consumption by unauthorised mining rigs has triggered widespread disruptions, leaving residential neighbourhoods, business districts, and industrial zones grappling with frequent blackouts. These outages have significantly compromised essential services across the emirate.
A unified front of government bodies, including the Ministry of Electricity, Water and Renewable Energy, alongside regulatory authorities for communications and industry, has issued stern warnings to mining operators. Those currently engaged in cryptocurrency mining activities have been directed to cease operations immediately or face robust legal consequences.
The enforcement strategy draws its legal basis from a comprehensive regulatory framework, incorporating the Communications and Information Technology Regulatory Law of 2014, industrial legislation from 1996, and municipal ordinances established in 2016. This multi-faceted approach underscores Kuwait’s determination to address what it views as a mounting threat to its national infrastructure.
