Crypto mining banned on farms in the United Arab Emirates

Abu Dhabi’s Agriculture and Food Security Authority is banning crypto mining on the country’s farms. Recalcitrants could be fined up to 10,000 dirhams, or $2,722. However, the country remains largely pro-crypto.

No crypto mining on UAE farms

Using electricity from one’s agricultural farm to practice crypto mining is a “common” practice in the United Arab Emirates. It allowed farmers to earn cryptocurrencies on top of their farm income. That’s all over now, and farmers in the United Arab Emirates will no longer be able to use their farms as crypto mining sites.

In a notice to farmers consulted by the media outlet Khaleej TimesThe Abu Dhabi Agriculture and Food Safety Authority (Adafsa) has declared that cryptocurrency mining is forbidden on agricultural farms. For the country’s agricultural authority, it’s out of the question for electricity intended for agriculture to be used for anything else.

This activity is considered misuse of the farm for purposes other than those intended.

Adafsa

To enforce this notice, the United Arab Emirates Agricultural Authority has introduced a fine for recalcitrant offenders. Indeed, those who practice crypto mining on an agricultural farm will have to pay up to 10,000 dirhams in fines. This is equivalent to around 2,722 US dollars.

United Arab Emirates remain pro-crypto

The ban on crypto mining on agricultural farms does not call into question the status of the United Arab Emirates. The country remains one of the cryptocurrency-friendly entities. For 2 years now, the United Arab Emirates (UAE) dominate the global rankings for crypto adoption. The country is one of the few that has adopted a crypto-friendly regulatory approachwhich has attracted several companies in the ecosystem.

Although banned on agricultural farms, crypto mining is doing well in the country. According to data from Hashrate Index, the combined Bitcoin mining capacity of the United Arab Emirates reached 400 MW in 2023. This represented 4% of the world’s Bitcoin hash rate, elevating the country to the fastest-growing pool for crypto mining in the Middle East.

The ban on crypto mining on agricultural farms in the UAE should be seen as a measure to rationalize electricity consumption. The country remains largely pro-crypto and is still opening up to mining players.