Kuwait intensifies investigation on unlawful cryptocurrency mining, over 60 individuals under scrutiny
Vibe Check: Here's the lowdown on the recent crackdown on unauthorized cryptocurrency mining in Kuwait:
Latest Buzz
- Illegal Mining Sweeps: The Kuwaiti authorities have kicked off a sprawling operation to stomp out unlawful cryptocurrency mining across the country. Over 60 individuals are currently under investigation, with the suspect pool expected to grow[1][2].
- Legal Heat: The Public Prosecution has kept a group of 26 suspects in custody for further interrogation. They're facing charges for jeopardizing national security by participating in banned activities and misusing energy resources[5].
- Cloak & Dagger: The focus of this clampdown has mainly landed on areas like Al-Wafrah and the Ahmadi Governorate. In Al-Wafrah, a substantial drop in electricity usage (approximately 55%) has been noticed since shutting down the mining operations[1][5].
- Pulling the Plug: The Ministry of Electricity has initiated power cuts to mining sites. Reconnecting the power now requires clearance from the Ministry of Interior[2].
Tough Love
- Regulatory Framework: Cryptocurrency mining has been forbidden in Kuwait since July 2023, as part of an all-out ban on crypto activities by the Financial Markets Authority[3].
- Anti-Money Laundering Gang: This committee, backed by the National Bank of Kuwait, has bolstered the ban on all crypto mining activities[2].
- Future Inquisitions: Authorities have hinted that more suspects could be unmasked as the investigation delves deeper into various communities[2].
Power Grid Troubles
- The covert mining activities have triggered considerable strain on the electrical grid, resulting in outages and disruptions in key services[3].
[1] Al-Rai Daily, Kuwait News Agency, 2023. (Accessed: 2023-07-18)[2] Gulf News, 2023. (Accessed: 2023-07-18)[3] Bloomberg News, 2023. (Accessed: 2023-07-18)[4] Reuters, 2023. (Accessed: 2023-07-18)[5] Kuwait Times, 2023. (Accessed: 2023-07-18)
Sheikh, in an effort to enforce the ban on cryptocurrency mining, has ordered raids on several suspected mining sites across Kuwait. These activities are not only illegal but also heavily strain the national electricity industry, linking the unauthorized mining to finance as these individuals are alleged to be misusing energy resources. The Public Prosecution is currently investigating over 60 suspects, many of whom are being held in custody.
