The authorities of a city in Kuwait called Al-Wafra have banned cryptomining. As a result, energy costs were reduced by 55% Kuwaiti authorities believe that mining farms are involved in a «major» energy crisis. The OPEC member country is struggling with an acute energy crisis caused by population growth, urban sprawl, rising temperatures, and delays in maintenance at some power plants.Cryptocurrency trading is prohibited in this country, but it does not directly apply to mining. However, the Ministry of the Interior considers it to be «illegal exploitation of electricity… which can cause interruptions in residential, commercial and service areas, posing a direct threat to public safety» The al-Wafra government conducted a massive raid on about 100 houses that could have housed mining farms. Some of these households consumed 20 times more electricity than the average Kuwaiti home.
Kuwait is a small, oil-rich country in the Middle East where electricity is inexpensive. This has made it an attractive region for crypto miners. However, urbanization has led to the fact that cryptomining has begun to intermingle with the domestic needs of residents and other businesses for electricity.
Source: Reuters
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