UAE Agriculture Authority Bans Cryptocurrency Mining on Farms
The Abu Dhabi Agriculture and Food Safety Authority of UAE issued a new advisory on Thursday prohibiting the use of farms for cryptocurrency mining. Farmers caught engaging in such activities face fines of up to 10,000 UAE dirhams (approximately $2,722).
The Abu Dhabi Agriculture and Food Safety Authority advisory explicitly stated that farms cannot be repurposed for cryptocurrency mining .
The government agency considers this a “misuse of the farm for purposes other than its intended use.” The prohibition is enforced with penalties for non-compliance, imposing fines of up to 10,000 UAE dirhams for those caught mining cryptocurrencies on farms.
Cryptocurrency mining involves using computational power to solve complex mathematical puzzles and validate transactions on blockchain networks. Successful miners are rewarded with newly minted cryptocurrency, making mining a lucrative endeavor for many. The energy-intensive process likely influenced the decision to restrict such activities on agricultural land to preserve its intended use.
#UAE authority warns of Dh10,000 fine for #crypto mining on farms.
The process involves the use of highly sophisticated computers that consume a great deal of energy. https://t.co/3KQhfNhRTV
— Khaleej Times (@khaleejtimes) May 23, 2024
Despite this specific prohibition, the UAE has established itself as a supportive jurisdiction for Bitcoin mining . In 2023, data indicated that the UAE accounted for around 400 megawatts of Bitcoin mining capacity, representing 4% of the global hash rate. This makes the UAE one of the leading Bitcoin mining hubs in the Middle East, demonstrating a favorable environment for crypto activities outside of agricultural contexts.
While the UAE maintains a generally
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