The authorities of Abu Dhabi have banned crypto mining on farms stating that farms cannot be utilised for crypto mining activities. This regulation addresses the issue of misuse of agricultural land and as a penalty, imposes a fine of 10,000 United Arab Emirates Dirhams (approximately $2,722) on violators.
While blockchain-related activities are allowed in the UAE, strict regulations have been made for cryptocurrency mining since it leads to the consumption of substantial energy due to the use of highly advanced computers.
This directive was issued by the Abu Dhabi Agriculture and Food Safety Authority (Adafsa) on Thursday to curb the misuse of farm resources for mining purposes.
“This activity is considered a misuse of the farm for purposes other than its intended use,” Adafsa said.
Hence, these stricter regulations have been formulated to preserve the agricultural integrity of the nation.
Is UAE Anti-Crypto?
A ban on crypto mining does not make the UAE anti-crypto. Rather, it is pro-crypto that emerged as a significant player in Bitcoin Mining in 2023. According to data from the Hashrate Index, the UAE held liability for almost 400 megawatts of Bitcoin mining capacity or 4% of the world’s hash rate.
Not only this, UAE has also given a VASP License to Binance in April and has always been a focal point for major crypto firms. Chainalysis has its regional headquarters in Dubai while the Blockdaemon has spread its presence in the region with the help of Abu Dhabi Global Market (ADGM), a prominent financial regulator.
Hence, the UAE aims to establish a perfect environment for the crypto market keeping in mind it does not affect the agricultural market.
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