Kuwait’s Ministry of Interior has issued a serious warning regarding illegal cryptocurrency mining, urging violators to halt operations or face legal consequences, according to local media reports.

In an announcement made on April 22, the ministry emphasized that cryptocurrency mining is strictly prohibited under Kuwaiti law, violating several regulations, including the Penal Code, Industry Law, and municipal guidelines.

This warning follows a nationwide investigation that uncovered over 1,000 locations suspected of operating crypto mining operations.

The Ministry of Electricity, Water, and Renewable Energy reported that some homes in Al-Wafra are consuming electricity at rates up to 20 times higher than normal, raising alarms about potential strain on the national power grid.

In 2023, the Capital Markets Authority enforced a blanket ban on all cryptocurrency activities in Kuwait, including mining, trading, and transfers. Despite this prohibition, illegal mining persists, likely due to the country’s low electricity costs.

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Authorities have made it clear that individuals engaged in illegal cryptocurrency mining will be prosecuted under existing laws.

However, both illegal mining and crypto trading remain ongoing issues, highlighted by the Bitcoin Kuwait scandal, which saw retail investors face losses totaling $130 million after the token’s collapse.

Meanwhile, in Pakistan, plans are underway to allocate part of the nation’s surplus electricity for Bitcoin mining and AI data centers, as stated by the head of Pakistan’s Crypto Council and adviser to the finance minister. Discussions have taken place with several mining firms regarding this initiative.

Pakistan’s energy sector is currently facing challenges, including high electricity tariffs and surplus generation capacity.

The rapid growth of solar energy has further complicated the situation, as more consumers seek alternative energy sources to manage costs.

Bilal Bin Saqib, CEO of the council, confirmed to Reuters that the mining center’s location was chosen based on the availability of excess power in specific regions.