In Abu Dhabi, cryptocurrency mining on agricultural land is now illegal, with penalties reaching AED 10,000. This regulation seeks to preserve the primary use of farm resources.
The Abu Dhabi Agriculture and Food Safety Authority has enacted a ban on cryptocurrency mining activities on farms, imposing fines of up to AED 10,000 (approximately $2,722) for violations. This regulation is designed to protect the integrity of agricultural land by preventing the diversion of resources and energy from farming to crypto mining operations.
Cryptocurrency mining requires significant computational power and energy, which can interfere with the primary functions of agricultural lands. As a result, farmers are now prohibited from engaging in mining activities to avoid incurring substantial penalties.
Despite this ban, the UAE continues to be a major player in the global Bitcoin mining sector. In 2023, the country contributed around 400 megawatts of mining capacity, representing approximately 4% of the global Bitcoin hash rate. Notably, Dubai’s Chainalysis and Abu Dhabi’s Blockdaemon have recently expanded their operations, underscoring the UAE’s commitment to maintaining a significant role in the crypto industry.
