The Abu Dhabi Agriculture and Food Safety Authority has issued a directive prohibiting the use of farms for cryptocurrency mining activities. This advisory emphasizes that utilizing farms for crypto mining constitutes a “misuse of the farm for purposes other than its intended use.” Violations of this regulation could result in penalties of up to 10,000 UAE dirhams (approximately $2,722).
Crypto mining, which involves confirming transactions on blockchain networks and earning cryptocurrencies as a reward, has been increasingly popular. However, the UAE authorities have decided to restrict this activity on agricultural properties to ensure farms are used appropriately.
Despite this prohibition on farms, the UAE has established itself as a pro-Bitcoin mining jurisdiction in the Middle East. In 2023, the UAE’s Bitcoin mining capacity was estimated to be around 400 megawatts, accounting for 4% of the global hash rate.
In contrast, other Middle Eastern countries have adopted more stringent measures against cryptocurrency activities. For instance, Kuwait has imposed a total ban on all cryptocurrency operations, including mining, as of July 18. The Capital Markets Authority of Kuwait confirmed this absolute prohibition.
Despite regional disparities, the UAE continues to attract numerous crypto-focused projects. In May, blockchain analytics firm Chainalysis and institutional infrastructure provider Blockdaemon both expanded their presence in the UAE. Chainalysis established its regional headquarters in Dubai, working closely with local government agencies to support regulatory development. Meanwhile, Blockdaemon opened an office in Abu Dhabi, further cementing its operations in the UAE.
Crypto industry leaders, including Chainlink co-founder Sergey Nazarov, have praised the UAE’s progressive stance on cryptocurrency. The supportive regulatory environment, coupled with robust legal and economic systems in Dubai, make the UAE an appealing hub for crypto-related ventures.