Abu Dhabi Agriculture and Food Safety Authority has banned cryptocurrency mining on farms.
This regulation addresses the misuse of agricultural land and imposes penalties of up to AED 10,000 (about $2,722) on violators.
Stricter regulations to maintain the safety of the agricultural environment
Cryptocurrency mining requires a lot of computing power and electricity, which interferes with the basic agricultural functions of farmers. The government aims to preserve the intended use of agricultural resources. Farmers should avoid cryptocurrency mining activities to avoid heavy fines.
Despite this regulation, the UAE remains pro-crypto. In 2023, the Arab country emerged as a significant player in the global Bitcoin mining scene, with a combined Bitcoin mining capacity of around 400 megawatts, contributing around 4% of the global Bitcoin hash rate.
The UAE is attracting major crypto companies. In May 2023, Chainalysis, a blockchain analytics firm, set up its regional headquarters in Dubai. Similarly, Blockdaemon, an enterprise infrastructure provider, expanded its presence in Abu Dhabi, facilitated by the Abu Dhabi Global Market (ADGM), a prominent financial regulator.
The UAE’s regulatory landscape balances innovation with compliance. In April 2023, the UAE introduced a crypto business licensing program, which adds to regulatory clarity. However, this program is not mandatory for Dubai or the country’s economic free zones, reflecting a nuanced approach to regulation.
