The Abu Dhabi Agriculture and Meals Security Authority has banned cryptocurrency mining on farms.
This regulation addresses the misuse of agricultural land and imposes penalties of as much as 10,000 United Arab Emirates Dirhams (roughly $2,722) for violators.
Stricter Laws to Protect Agricultural Integrity
Cryptocurrency mining calls for substantial computational energy and electrical energy, conflicting with farms’ main agricultural capabilities. The federal government goals to protect the supposed use of agricultural assets. Farmers should keep away from cryptocurrency mining actions to forestall hefty fines.
UAE Bitcoin mining overview. Supply: Hashrate Index
Regardless of this regulation, the United Arab Emirates (UAE) stays pro-crypto. In 2023, the nation emerged as a big participant within the world Bitcoin mining panorama, with a mixed Bitcoin mining capability of round 400 megawatts, contributing roughly 4% of the worldwide Bitcoin hash price.
The UAE attracts main crypto corporations. In Might 2023, Chainalysis, a blockchain analytics agency, established its regional headquarters in Dubai. Equally, Blockdaemon, a supplier of institutional infrastructure, expanded its presence in Abu Dhabi, facilitated by the Abu Dhabi International Market (ADGM), a outstanding monetary regulator.
Learn extra: Is Crypto Mining Worthwhile in 2024?
The UAE’s regulatory panorama balances innovation with compliance. In April 2023, the UAE launched a crypto enterprise licensing program, selling regulatory readability. Nevertheless, this program isn’t necessary for Dubai or the nation’s financial free zones, reflecting a nuanced strategy to regulation.
