UAE Agriculture Authority bans crypto mining on farms

2024-05-25 12:28:59

Those caught crypto mining on UAE farms face up to slashing of up to 10,000 dirhams, or about 2,722 USD.

The agriculture authority in Abu Dhabi, United Arab Emirates (UAE) has introduced a new law banning crypto mining on farms intended for farmers

Abu Dhabi’s Food and Agriculture Safety Authority has said that the farms cannot be used as crypto mining sites, which would be considered “farm abuse beyond use”.

Moreover, those arrested for violating this regulation will face up to slashing of up to 10,000 UAE dirhams, worth about USD 2,722.

Cryptocurrency Mining is a common job for users to make money electronics by acting as transaction validators on blockchain networks.

Although crypto mining activity is prohibited on farms, the UAE has emerged as a jurisdiction that favors Bitcoin mining in the Middle East by 2023. At the time, data showed that the UAE’s total Bitcoin of mining capacity was about 400 megawatts, equal to 4% of hashrate of Bitcoin’s entire bridge.

Meanwhile, while the UAE is openly crypto-friendly, other Middle Eastern countries like Kuwait are less welcoming digital asset.

On July 18, Kuwait’s main financial regulator, the Capital Market Authority (CMA), confirmed the “absolute prohibition” order for cryptocurrency uses, including crypto mining operations.

Despite the stance of many countries in the region, the UAE remains at the center of many projects focused on cryptocurrency development. In May alone, blockchain analytics firm Chainalysis and infrastructure provider Blockdaemon expanded operations into the UAE.

On May 8, Chainalysis established its regional headquarters in Dubai. The company has partnered with local government agencies and provided advice on developing regulations and enacting laws to drive innovation.

On May 13, Blockdaemon opened its new office in Abu Dhabi. The company said the expansion plan was approved by Abu Dhabi Global bridge Market, one of the country’s financial regulators.

Crypto-native projects also believe that the UAE is very progressive when it comes to cryptocurrencies. In a previous interview, Chainlink co-founder Sergey Nazarov said that Dubai’s government, regulators, legal system, and economy are attractive to the crypto space.

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