Kuwait Bans Cryptocurrency Mining Under Multi-Law Crackdown

On April 22, 2025, Kuwait’s Ministry of Interior issued an official statement banning all cryptocurrency mining activities within the country. The move follows heightened scrutiny of illicit mining operations using residential properties and subsidized electricity, placing severe strain on Kuwait’s power grid.

The Ministry’s announcement—issued in coordination with the Ministry of Electricity, CITRA, the Public Authority for Industry, and the Municipality—emphasized that cryptocurrency mining is an illegal, unlicensed activity that violates several national laws, including:

• Penal Code No. 16/1960 (as amended by Law No. 31/1970) – for engaging in unauthorized activity.

• Law No. 56/1996 – governing industrial and commercial licensing.

• Law No. 37/2014 – regulating IT and telecom activity via CITRA.

• Law No. 33/2016 – on zoning and municipal use violations.

• Law No. 64/2022 – on electricity and water conservation.

Authorities noted that some individuals had exploited Kuwait’s heavily subsidized electricity—among the lowest globally at approximately 2 fils per kilowatt-hour (USD $0.0065) for residential use—to run high-powered mining equipment in private homes or rented properties. These covert operations led to excessive energy use and network overloads, threatening essential services and public safety.

The Ministry warned that violators will face legal consequences, including referral to investigative authorities. This enforcement reflects Kuwait’s broader stance: all cryptocurrency activities—trading, investment, payments, or mining—remain strictly prohibited under current regulatory policy, as first declared in July 2023.

Businesses and individuals are urged to ensure compliance, as any involvement in crypto mining may trigger administrative, criminal, and financial penalties. Authorities have made clear: zero tolerance applies.