Abu Dhabi authorities have declared that farms cannot be utilized for cryptocurrency mining activities. Cryptocurrency mining involves verifying transactions and generating new coins using highly advanced computers that consume substantial energy. While blockchain-related endeavors are permitted in the UAE, stringent regulations are enforced.
The Abu Dhabi Agriculture and Food Safety Authority (Adafsa) issued a directive to farmers on Thursday, emphasizing that cryptocurrency mining on farms is not permissible due to the potential escalation of electricity bills. Adafsa deemed this activity as a misuse of farm resources for unintended purposes.
Individuals found engaging in crypto mining on farms may incur fines of up to Dh10,000, as per Adafsa’s announcement.
Despite this prohibition, the UAE has emerged as a supportive jurisdiction for Bitcoin mining. In 2023, data from Hashrate Index revealed that the UAE accounted for approximately 400 megawatts of Bitcoin mining capacity, constituting 4% of the global hash rate. This establishes the UAE as a prominent Bitcoin mining hub in the Middle East, showcasing a conducive environment for cryptocurrency activities beyond agricultural settings.
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