Kuwait steps up efforts to apprehend individuals involved in unauthorized cryptocurrency mining, with approximately 60 potential offenders currently under scrutiny.
Rewritten Article:
In the ongoing crackdown against unauthorized "cryptocurrency mining" activities, the Public Prosecution is prosecuting around 60 individuals, with more expected, following a wide-reaching security campaign last Friday. This joint operation, overseen by key Ministers, targeted residential properties found to be in violation of national regulations.
The Council of Ministers applauded the initiative as part of a broader drive to counter illegal activities threatening public infrastructure. Unauthorized cryptocurrency mining operations were singled out for illegally exploiting electrical power, leading to power outages, and disturbing residential, commercial, and service sectors.
The Public Prosecution, through the Commercial Affairs Division, has temporarily detained several defendants—homeowners who had leased their properties, arrested during raids by the Ministry of Interior, while others were released on a 500 Kuwaiti dinars bond. Prosecutors presented financial records revealing suspiciously high bank accounts linked to unidentified sources and daily profits ranging from 3,000 to 4,000 dinars from mining operations.
Accused individuals face charges related to endangering national interests and operating without a license. Although they denied the charges, they were confronted with evidence linking them to seized mining equipment and activities.
Informed sources revealed that the search for illegal cryptocurrency mining sites is ongoing, expanding to areas like Wafra, Sabah Al-Ahmad, and Mutla'a. No area will be spared from inspection.
The Ministry of Electricity has started cutting power to homes involved in mining, and power restoration now requires approval from the Ministry of Interior. Authorities are also enforcing penalties in line with the government's firm stance against virtual currency mining, using regulations issued by the National Committee for Combating Money Laundering and Terrorism Financing, in collaboration with the Central Bank of Kuwait, the Ministry of Commerce, and the Capital Markets Authority. These regulations impose a total ban on all virtual asset and currency mining activities.
Enrichment Insights:
- Government Regulations: The Kuwaiti government strictly prohibits all cryptocurrency-related activities such as mining, trading, and transfers due to violations of multiple national laws including Industry Law No. (56) of 1996, Penal Code No. (16) of 1960, CITRA Law No. (37) of 2014, and Kuwait Municipality Law No. (33) of 2016.
- Penalties: Those involved in illegal mining can expect legal consequences and may be referred to investigative authorities. The Ministry of Interior has warned violators to desist or face such penalties.
- Ongoing Investigations: The Ministry of Interior, along with other entities, has been conducting joint investigations to identify and eliminate illegal mining sites and protect public safety. Recent probes have identified over a thousand potential cryptocurrency mining sites. The relatively low cost of electricity in Kuwait is believed to be a contributing factor to persistent mining activities despite the official ban.
- The Sheikh, in efforts to enforce national regulations against unauthorized cryptocurrency mining, is leading a wide-ranging security campaign that has targeted residential properties.
- The raids, carried out by the Ministry of Interior, have resulted in the temporary detention of several defendants for illegally exploiting electricity.
- The General-news and Crime-and-Justice sectors are reporting that the financial records seized during these raids have revealed suspicious bank accounts linked to mining operations, generating profits of around 3,000 to 4,000 Kuwaiti dinars daily.
- Amidst these investigations, the link between finance and cryptocurrency mining is becoming increasingly apparent, with the Ministry of Electricity taking measures such as cutting power to homes involved in mining and enforcing penalties.
