UAE Agriculture Authority Bans Crypto Mining on Farms: Report
The Agriculture Authority in Abu Dhabi, United Arab Emirates (UAE) has issued an advisory to farmers banning mining on farms.
The Abu Dhabi Agriculture and Food Safety Authority has informed farmers that farms cannot be used for mining. The government agency said the move was considered “abuse of the farm for its intended purposes”.
Additionally, those caught violating this law face fines of up to $2,722 and up to 10,000 UAE dirhams.
Cryptomining is a popular way for users to earn cryptocurrency by verifying transactions on blockchain-based networks. For completing mathematical puzzles and securing the network, miners are rewarded with newly generated crypto.
Despite the ban on crypto mining, the United Arab Emirates emerged as a pro-Bitcoin mining power in the Middle East in 2023. Current data shows that the UAE's Bitcoin mining capacity is around 400 megawatts, accounting for 4% of Bitcoin's global hashrate.
Meanwhile, while the UAE is clearly friendly to crypto, other Middle Eastern countries such as Kuwait are less receptive to digital assets.
On July 18, Kuwait banned all operations involving cryptocurrencies, including mining. Kuwait's main financial regulator, the Capital Markets Authority (CMA), has confirmed an “absolute ban” on crypto-use cases, which includes crypto-mining.
Related: Chainalysis establishes regional headquarters in Dubai amid local crypto boom
Despite the stance of other countries, the UAE has been a hub for many crypto-focused projects. In May alone, blockchain analytics firm Chainalysis and institutional infrastructure provider BlockDaemon expanded into the United Arab Emirates.
On May 8, Chainalysis established its regional headquarters in Dubai. The company has been engaging with local government agencies and advising on regulatory development with the aim of driving innovation.
On May 13, BlockDemon opened a new office in Abu Dhabi, expanding its presence in the United Arab Emirates. The company announced that its expansion plans have been approved by Abu Dhabi Global Market (ADGM), one of the country's financial regulators.
Crypto-native projects also believe that the UAE has been the most advanced when it comes to crypto. In a previous Cointelegraph interview, Chainlink founder Sergey Nazarov said Dubai's government, regulators, legal system and economics are attractive to the crypto space.
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