Kuwait’s Ministry of Interior recently announced a ban on Bitcoin mining, citing concerns over excessive power consumption and violations of national regulations. The government warned that these operations are unauthorized and breach multiple existing laws, including the penal code, communication and IT regulations, industrial laws, and municipal rules. The Ministry emphasized that crypto mining places a strain on the country’s electrical grid and could potentially lead to power outages, threatening public safety and essential services. As a result, authorities have urged individuals involved in mining to cease operations to avoid legal consequences.
This latest enforcement action in Kuwait comes after a broader ban on crypto-related activities issued in 2023 by the Capital Markets Authority. The recent warning is a joint effort involving the Ministry of Interior, the Ministry of Electricity, Water and Renewable Energy, and other regulatory bodies, with the goal of preventing infrastructure degradation and promoting responsible energy use. While Kuwait is cracking down on Bitcoin mining, other countries are moving in the opposite direction, embracing the industry as part of their digital asset strategies.
One example is El Salvador, which operates state-backed mining farms powered by volcanic energy. Russia has also legalized mining and seen a significant increase in local activity, despite imposing certain limits. Other countries like Belarus and Pakistan are exploring ways to leverage surplus electricity for Bitcoin mining to generate economic value. In the United States, there is a shift towards supporting the emerging industry, with policymakers under the former Trump administration expressing ambitions to lead in the global crypto space through regulatory frameworks that support mining.
As the global landscape for Bitcoin mining continues to evolve, Kuwait’s ban highlights the differing approaches countries are taking towards the industry. While some nations are embracing and legalizing mining as part of their economic strategies, others are imposing restrictions to address concerns over power consumption and compliance with regulations. It remains to be seen how these divergent approaches will impact the future of Bitcoin mining on a global scale.
