Kuwait’s Ministry of Interior has declared cryptocurrency mining illegal, citing violations of multiple laws and its strain on the country’s electrical infrastructure.
Kuwait Warns Against Illegal Cryptocurrency Mining
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Crypto Mining Kuwait’s Electricity Infrastructure
The Ministry of Interior in Kuwait has issued a warning against the practice of cryptocurrency mining, declaring it an unlicensed and illegal activity that violates several existing laws. According to an April 22 announcement, cryptocurrency mining contravenes at least key pieces of legislation.
The Ministry highlighted Law No. (31) of 1970 amending the Penal Law, Law No. (37) of 2014 concerning the Communications and Information Technology Regulatory Authority, the Industrial Law No. (56) of 1996, and Law No. (33) of 2016 pertaining to the Kuwait Municipality as being breached by unauthorized cryptocurrency mining.
Beyond the legal ramifications, the Ministry emphasized the significant strain that cryptocurrency mining places on the nation’s electrical infrastructure. In a statement, officials affirmed that the energy-intensive process leads to “excessive consumption of electrical energy, which causes an increase in the load on the public network.” This, the Ministry warned, results in “interruptions in the electrical current affecting residential, commercial, and industrial areas, and disrupts the provision of essential services.”
The Interior Ministry went on to state that such disruption poses a direct “threat to public safety and the regularity of providing basic services.” The warning was issued following coordinated efforts between several key governmental bodies, including the Ministry of Electricity and Water and Renewable Energy, the Public Authority for Communications and Information Technology, the Public Authority for Industry, and Kuwait Municipality.
Recognizing that some individuals or entities may be unaware of the legal implications, the Interior Ministry has called on entities involved in cryptocurrency mining to “adjust their status quickly.” However, the statement made it clear that this window of opportunity is limited.
“In case of non-compliance, the necessary legal measures will be taken against all violators, including referring the violators to the competent investigation authorities to take the necessary action in accordance with the prevailing laws,” the Ministry said.
