Kuwait shuts down on crypto miners as nations struggles with blackouts

Once one of the cheapest nations to extract Bitcoin, Kuwait repressed the practice, citing the increase in electricity demands in the midst of an increasing energy crisis.

Cryptographic minors are again faced with regulatory pressure due to their energy consumption. Thursday May 1, Kuwait has initiated a repression On crypto extraction sites, accusing them of a major pressure on the country’s electricity network.

According to the country’s interior ministry, the country has launched a generalized operation targeting houses that have embarked on the exploitation of cryptography. Local media indicated that the scanning had resulted in surveys on Over 60 people suspected of engaging in the exploitation of cryptography.

Crypto extraction operations “constitute an illegal exploitation of electrical energy … and can cause breakdowns affecting residential, commercial and service areas, constituting a direct threat to public security,” said the ministry.

Kuwait is struggling to increase energy consumption

This decision comes as the nation faces recurrent power outages caused by rapid population growth and an increase in temperatures. In May, temperatures vary from 32 ° C (90 ° F) to 39 ° C (102 ° F), placing a major constraint on the electric grid. The widespread use of air conditioning is an important contributor to the overall demand for electricity.

At the same time, Kuwait ranks in the first 20 countries in the world with the cheapest electricity. According to a reportElectricity in Kuwait costs only 2.9 cents per kilowatt hour, much lower than that of most industrialized countries.

Given that electricity is one of the most important contributions in the proof of labor exploitation, minors in places like Kuwait are more competitive than in many other countries. It made one attractive nation For crypto minors, taking out one of the cheapest places to exploit the crypto.

Although the exploitation of crypto was not the only factor contributing to high energy consumption, Kuwait was not the only country to ban practice. Earlier, Russia and China, two countries that have cheap energy, prohibited practice. Russia cited the strains on the electricity network, while China prohibits mining Due to its commitment to a green energy transition.