Kuwait has officially banned Bitcoin and cryptocurrency mining, citing significant strain on the national power grid and violations of regulatory frameworks. The Ministry of Interior, in a statement issued on April 22, 2025, declared that cryptocurrency mining is illegal and unlicensed across the country. Authorities reported uncovering more than 1,000 illegal mining sites, many of which were disguised within residential areas to avoid detection.
According to officials, operators of these sites used deceptive tactics, such as shutting off major household appliances, to conceal the excessive energy consumption typical of crypto mining rigs. These activities, the ministry said, endanger Kuwait’s electricity infrastructure and risk widespread power outages that could impact essential services and public safety. In addition to increased energy consumption, some mining setups have been linked to fire hazards due to overheating and improper electrical configurations, further intensifying public safety concerns.
Legal Framework Reinforces Crackdown on Bitcoin Mining
The government has invoked several existing laws to reinforce the ban. These include Law No. 56 of 1996 regulating industry, Law No. 31 of 1970 concerning amendments to the penal code, Law No. 37 of 2014 under the Communications and Information Technology Regulatory Authority, and Law No. 33 of 2016 concerning the Kuwait Municipality.
This latest enforcement push reflects Kuwait’s broader anti-crypto stance. In July 2023, the Capital Markets Authority (CMA) issued a comprehensive directive that explicitly prohibited all major crypto-related activities — including payments, investments, and mining. The directive was designed to align Kuwait with global anti-money laundering (AML) and counter-terrorism financing (CFT) standards. By framing cryptocurrency activities as potential avenues for illicit financial flows, the CMA reinforced the government’s position that digital assets should not operate outside the scope of regulated financial systems.
Moreover, the authorities noted that crypto mining is inherently difficult to regulate, as it typically operates outside formal business or commercial registration systems. The anonymous and decentralized nature of blockchain networks makes it challenging for regulators to track transactions, raising additional concerns about financial transparency and systemic risks.
Immediate Enforcement and Penalties
The Ministry of Interior has urged all individuals and organizations involved in cryptocurrency mining to cease operations immediately. Those found continuing such activities face legal prosecution and referral to investigative authorities. Officials confirmed that multiple operators are already under investigation, and legal proceedings are expected to begin shortly.
The crackdown underscores Kuwait’s commitment to safeguarding its energy resources and financial ecosystem from unregulated and illicit crypto activities. It also reflects a growing trend among nations in the Gulf region to scrutinize digital asset operations more closely. While some countries explore regulated frameworks to integrate cryptocurrencies into their financial markets, others like Kuwait are opting for a more prohibitive approach in order to preserve national infrastructure and maintain legal clarity.
Kuwait’s decision positions it among a growing list of nations reevaluating the energy and legal implications of decentralized technologies in the face of increasing regulatory scrutiny worldwide. With rising global attention on energy sustainability and financial security, the country’s firm stance may influence similar regulatory moves across the Middle East and beyond.