Kuwait cracks down on crypto miners to cut down on electricity usage

Engadget - May 2nd, 2025

Kuwait has initiated a major crackdown on cryptocurrency miners, citing their significant impact on the country's power grid and contribution to blackouts. The Ministry of Interior announced a broad security operation targeting homes, especially in the Al-Wafrah region, where crypto mining had caused energy consumption to spike to 20 times the normal levels. Following the operation, energy use in the area reportedly dropped by 55%. This move comes as the nation braces for summer temperatures that could reach 125 degrees Fahrenheit. Crypto mining and trading were banned in Kuwait by the Capital Markets Authority in 2023.

The crackdown highlights a global trend of regulating cryptocurrency mining due to its heavy electricity demands. Countries like Russia, Kosovo, and Angola have imposed bans, while European nations such as Iceland and Norway regulate the practice due to energy shortages. Despite Kuwait's minimal contribution to global bitcoin mining, experts argue that even a small mining presence can significantly impact the country's electricity consumption. This development underscores broader concerns about the sustainability of cryptocurrency mining and its ecological footprint, as evidenced by its substantial energy consumption compared to other sectors, such as in the US.

Cryptocurrency Bitcoin Kuwait Crypto Mining Power Grid Energy Consumption Capital Markets Authority

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RATING

7.8

Fair Story

Consider it well-founded

The article provides a clear and accurate account of Kuwait's crackdown on cryptocurrency mining, supported by credible sources and expert opinions. It effectively places the story within a broader global context, highlighting similar regulatory actions in other countries. However, the narrative is somewhat one-sided, primarily presenting the government's perspective without exploring counterarguments or the views of those directly affected by the crackdown. This limits the story's balance and potential to engage readers in deeper discussions. While the article is timely and addresses issues of public interest, its impact could be enhanced by incorporating a wider range of perspectives and more detailed data analysis. Overall, the article is well-written and informative, but it could benefit from greater depth and diversity in its coverage.

Accuracy

The story accurately reports on Kuwait's crackdown on cryptocurrency mining, as confirmed by multiple sources. The claim that the crackdown targets homes suspected of mining in the Al-Wafrah region is consistent with government statements. However, the specific impact on energy consumption, such as the 55% reduction, is only mentioned in the original article without corroboration from other sources. The historical context of the 2023 ban on crypto mining and trading aligns with the article's claims, although further verification from Kuwaiti regulatory announcements would be beneficial. Overall, the article presents a well-supported narrative, though some data points require additional external validation.

Balance

The article primarily presents the perspective of the Kuwaiti government and its rationale for the crackdown on cryptocurrency mining. It includes expert commentary from Alex de Vries-Gao, which adds a layer of analysis on the impact of mining on Kuwait's energy consumption. However, the story lacks perspectives from cryptocurrency miners or industry advocates who might offer counterarguments or alternative viewpoints. This omission results in a somewhat one-sided narrative that could benefit from a more comprehensive exploration of the issue, including potential economic or technological benefits of cryptocurrency mining.

Clarity

The article is well-structured and uses clear, straightforward language to convey information about Kuwait's actions against cryptocurrency mining. The logical flow of the narrative helps readers easily follow the government's rationale, the operations conducted, and the broader context of global cryptocurrency regulations. The inclusion of expert opinions and comparative data from other countries further clarifies the issue. The article maintains a neutral tone, avoiding sensationalism, which contributes to its overall clarity and readability.

Source quality

The article cites credible sources, including government statements and expert opinions, which enhance its reliability. The inclusion of data from the University of Cambridge and commentary from Alex de Vries-Gao, a recognized expert in crypto energy use, further supports the article's claims. However, the reliance on a single report for specific regional impacts, such as the energy reduction in Al-Wafrah, suggests a need for additional sources to strengthen the overall credibility. The article would benefit from a broader range of sources, including independent energy analysts or local reports, to provide a more nuanced understanding of the situation.

Transparency

The article clearly states its sources and provides context for Kuwait's actions against cryptocurrency mining. It mentions the country's previous ban on mining and trading, offering a historical backdrop to the current crackdown. However, the article does not fully disclose the methodology behind certain claims, such as the energy consumption figures and the specific impact on the power grid. Greater transparency regarding the data collection and analysis processes would enhance the reader's understanding of the article's basis and the reliability of its claims.