Summary
- Kuwait’s Ministry of Interior bans unlicensed cryptocurrency mining
- Violations span multiple laws, including IT, industrial, and municipal regulations
- Mining’s power usage threatens public safety and service delivery
- Authorities warn of legal action for non-compliance
- Window open for violators to correct their status—temporarily
The Ban: Crypto Mining Now Illegal in Kuwait
Kuwait’s Ministry of Interior has issued a firm warning to individuals and businesses engaged in cryptocurrency mining—it’s now officially illegal. Citing violations of numerous national laws, the Ministry made it clear in an April 22 statement that unauthorized mining operations must cease immediately.
The crackdown comes amid growing concerns about the massive strain mining places on Kuwait’s electrical infrastructure.
Power Grid Under Pressure
The Ministry didn’t mince words about the dangers of crypto mining to the country’s energy systems. Officials stated that the activity causes “excessive consumption of electrical energy, which causes an increase in the load on the public network.” This has led to disruptions in residential, commercial, and industrial areas, with essential services being affected.
The Ministry further emphasized the broader impact:
“Such disruption poses a direct threat to public safety and the regularity of providing basic services.”
Violating Multiple Laws
The decision isn’t just about energy. Cryptocurrency mining is said to breach:
- Law No. (31) of 1970 – Penal Law
- Law No. (37) of 2014 – Communications and IT Regulatory Authority
- Law No. (56) of 1996 – Industrial Law
- Law No. (33) of 2016 – Municipality Law
The announcement follows joint efforts from the Ministry of Electricity and Water, the Communications Authority, the Industry Authority, and Kuwait Municipality—signaling a united front on enforcement.
A Limited Opportunity to Comply
Acknowledging that some may have unknowingly engaged in illegal mining, the Ministry urged all operators to “adjust their status quickly.” However, this grace period is short-lived.
They warned:
“In case of non-compliance, the necessary legal measures will be taken against all violators, including referring the violators to the competent investigation authorities.”
Final Thoughts
Kuwait’s strong stance signals a tough regulatory shift in the Middle East’s approach to crypto activities, especially when they clash with infrastructure and public welfare. If you’re involved in crypto in Kuwait, now is the time to take this seriously—non-compliance could mean legal trouble ahead