Kuwait, once considered a haven for cost-effective Bitcoin mining, has launched a sweeping crackdown on the practice as the country grapples with an intensifying energy crisis.
According to a May 1 report, authorities began targeting residential properties involved in cryptocurrency mining, citing the activity as a major burden on the national power grid.
The Ministry of Interior stated that mining operations pose a serious risk to public safety by unlawfully consuming electricity and potentially triggering power outages. The nationwide operation has already led to the investigation of more than 60 individuals suspected of running mining rigs from their homes.
This clampdown comes as Kuwait battles recurring blackouts, driven by surging population numbers and blistering heat. In May, temperatures typically range between 32°C (90°F) and 39°C (102°F), pushing air conditioning systems into overdrive and placing unprecedented strain on the electricity infrastructure.
Despite these challenges, Kuwait remains one of the world’s cheapest countries for electricity, with rates as low as 2.9 cents per kilowatt-hour, far below the global average. This low cost has made it a magnet for crypto miners, especially those using energy-intensive proof-of-work mechanisms like Bitcoin.
While mining is not the sole factor behind Kuwait’s power woes, it has become a key focus for regulators looking to reduce unnecessary electricity consumption. Kuwait now joins a growing list of nations—including Russia and China—that have banned crypto mining to safeguard energy supplies or advance climate goals. In both cases, cheap electricity drew miners before authorities intervened, citing national interests.
Meanwhile, another bill was introduced in the Arkansas state senate that seeks to ban digital-asset mining operations within a 30-mile radius of U.S. military installations. Senate Bill 60, co-sponsored by Senator Ricky Hill and House Speaker Brian Evans, was filed on January 15 to amend the Arkansas Data Centres Act of 2023.
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