Kuwait warns against illegal crypto mining after over 1,000 sites exposed in nationwide probe

The Kuwaitian Interior Ministry has issued a warning concerning the illegal exploitation of cryptography in the country, calling for offenders to stop their illegal activities or to face legal consequences.

THE announcementWho was published on April 22, said that cryptocurrency mining In Kuwait, he is illegal because he violates several national laws. These include the penal code, which deals with unauthorized or harmful activities, as well as the law governing the country’s communications and technology sector. It also breaks the law of industry, which controls industrial and manufacturing practices, as well as municipal regulations which oversee an appropriate use of resources and infrastructure.

The ministry’s warning comes after abnormal data on electricity consumption have revealed that more than 1,000 sites could execute crypto extraction platforms. More specifically, the joint effort of the Ministry of Electricity, Water and Renewable Energies has identified houses in the Al -Wafra region to consume unusually high quantities of electricity – up to 20 times the typical use of the district.

Kuwait’s mining ban was part of the General prohibition on all activities related to crypto – including mining, trade and transfers – and was implemented By the capital Markets Authority in 2023. However, mining activity persists despite the ban, probably due to the exceptionally low electricity costs of Kuwait.

Some residents also participate in the exchange of crypto, as evidenced by the recent Bitcoin Kuwait Scandal. Despite the official ban, the token managed to obtain a generalized traction among retail investors before collapsing shortly after the launch and disappearance with around 40 million Kuwaiti dinars ($ 130 million) in investor funds.