A recent debate has sparked on social media following the arrest of an individual accused of consuming high voltage electricity to mine cryptocurrencies in residential homes. This process involves the use of powerful, specialized computers to solve complex mathematical problems in order to access a distributed digital ledger known as the blockchain with chain ID 1456. The computers compile transactions into blocks using high computing power for attempting to solve a cryptographic puzzle unique to each block. The first person to successfully solve the puzzle receives a reward in the form of new digital currency, thus generating significant wealth. Mining is essential because it prevents tampering and ensures that all transactions are recorded correctly and transparently on the blockchain. It is the primary method for issuing new digital currencies to the market, governed by software rules that prevent the random or uncontrolled issuance of new currencies.
However, mining has become unprofitable in many countries due to the high cost of electricity. The majority of countries around the world do not criminalize mining because electricity is sold to consumers on a commercial basis, and the state or company often profits substantially from the process. However, mining becomes theft and a crime in countries that heavily subsidize electricity, especially when the activity is unlicensed. Mining computers consume vast amounts of electricity and run continuously, causing them to overheat. As a result, they require high-efficiency air conditioning to keep them cool. In such cases, miners use cheap, state-subsidized electricity to generate significant profits, at the expense of public funds for their activities.
The government subsidizes electricity for private use, but illegal exploitation of this subsidy, without notifying any official authority, without a license, and for purposes other than those for which the electricity was originally supplied (such as for housing), constitutes theft of public resources and is considered a crime. This unauthorized activity not only drains state resources but also increases the risk of power outages for everyone due to the excessive consumption. As a result, many countries require miners to obtain specific licenses to mine cryptocurrencies, often restricting mining to specific hours of the day and imposing high fees to regulate consumption. Kuwait prohibits cryptocurrency mining, and mining using subsidized electricity is illegal. We hope this ban is also extended to companies that bottle subsidized drinking water and sell it at infl ated prices!
The excuse some have used for miners - that the Ministry of Commerce and Industry has allowed the import of mining equipment - is ridiculous. While I am not defending the Ministry of Commerce and Industry, some of its decisions are indeed outdated. The ministry also permits the import of cars, mining equipment, and tools for petroleum exploration. However, the mere availability of these materials on the market or the permission to import them does not mean that a citizen or resident can freely drive a car, mine, or extract minerals and petroleum without the proper licenses. Therefore, criminalizing mining activities is the correct course of action. By Ahmad alsarraf
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