Kuwaiti authorities have launched a sweeping crackdown on illegal cryptocurrency mining, blaming the energy-intensive activity for worsening the country’s deepening power crisis ahead of the scorching summer months.

The Interior Ministry announced the start of a “wide-ranging” security operation last week targeting residential properties across the country being used for crypto mining. Officials say the practice—though not explicitly outlawed—is illegal due to its heavy, unauthorized consumption of subsidized electricity.

The ministry warned in a statement that mining operations “constitute an unlawful exploitation of electrical power” and pose a threat to public safety by risking blackouts across residential, commercial, and service areas.

Although Kuwait has banned cryptocurrency trading, no specific laws currently regulate crypto mining. Still, the country’s generous electricity subsidies and lack of oversight have drawn miners to set up operations in private homes, particularly in areas such as Al-Wafrah, where the electricity ministry said up to 100 homes were used for mining, some consuming 20 times the normal power usage. Following last week’s raid, energy use in Al-Wafrah dropped by 55%.

“Kuwaitis saw government subsidies, the absence of oversight, and no legal barriers, so they exploited the situation,” said Saud Al-Zaid, a former board member of the Communications and Information Technology Regulatory Authority.

An official from the electricity ministry acknowledged that crypto mining is only one of several contributors to the ongoing power shortages. The crisis is also being driven by a surge in population, urban expansion, soaring summer temperatures, and delays in power plant maintenance.

Despite Kuwait accounting for just 0.05% of global Bitcoin mining in 2022, experts say even small-scale operations can have outsized effects in countries with smaller energy grids. “It only takes a very small share of the total bitcoin mining network to have significant impact,” said Alex de Vries-Gao, founder of Digiconomist.

Kuwait’s central bank continues to warn citizens against investing in crypto, in contrast with regional neighbors like the UAE, where Dubai this week hosted a major cryptocurrency event attended by high-profile figures including Eric Trump, son of former U.S. President Donald Trump.

The government has urged residents to curb electricity use, warning that increasing demand from air conditioning could push the already strained grid to breaking point.