Kuwait‘s Interior Ministry has outlawed Bitcoin mining, citing excessive energy consumption and violation of national regulations.
In a statement on April 22, the government warned that cryptocurrency mining operations in the country are unauthorized and violate multiple existing laws: Kuwait’s penal code, communications and information technology regulations, industry laws, and municipal regulations.
In addition, mining places an unsustainable burden on the national power grid and “potentially threatens public safety.”
Cryptocurrency mining leads to excessive consumption of electricity, which increases the load on the power grid and may lead to power outages in residential, commercial and office premises, posing a threat to public safety and the regular provision of vital services, the ministry said in a statement.
In 2023, the Kuwait Capital Markets Authority also banned other cryptocurrency-related activities.
While Kuwait tightens restrictions on digital assets, mining is gaining official approval in other countries. For example, authorities in Belarus and Pakistan are exploring ways to channel excess electricity into Bitcoin mining for economic gain.
