Abu Dhabi bans cryptocurrency mining on farms

The Abu Dhabi Agriculture and Food Safety Authority has banned cryptocurrency mining on farms.

have food The regulation constitutes misuse of agricultural land and imposes penalties of up to 10,000 UAE dirhams (about $2,722) on violators.

Stricter regulations to keep the agricultural environment safe

Cryptocurrency mining requires significant computing power and electricity, which interferes with the farmer's basic agricultural functions. The government aims to preserve the intended use of agricultural resources. Farmers should avoid cryptocurrency mining activities to avoid heavy fines.

Despite these regulations, the United Arab Emirates remains pro-cryptocurrencies. In 2023, it appeared The Arab country is an important player in the global Bitcoin mining scenewith a combined Bitcoin mining capacity of approximately 400 MW, which contributes about 4% From the global Bitcoin hash rate.

The UAE is attracting big crypto companies. In May 2023, Chainalysis, a blockchain analytics company, established its regional headquarters in Dubai. Similarly, BlockDamon, an institutional infrastructure provider, has expanded its presence in Abu Dhabi, facilitated by Abu Dhabi Global Market (ADGM), a major financial regulator.

Learn more: What is the future of Bitcoin after mining ends?

The UAE's regulatory landscape balances innovation and compliance. In April 2023, the UAE introduced a licensing program for crypto businesses, improving regulatory clarity. However, this program is not mandatory for Dubai or the country's free economic zones, reflecting a cautious approach to regulation.