This regulation addresses the misuse of agricultural land and imposes fines of up to 10,000 UAE dirhams (approximately $2,722) on offenders who mine cryptocurrency there.
Stricter regulations to maintain agricultural integrity
Cryptocurrency mining requires significant computing power and electricity, creating a conflict with the primary agricultural functions of farms. The government therefore strives to preserve the intended use of agricultural resources; therefore, farmers in the region must now avoid mining activities to avoid heavy fines.
Despite these regulations, the United Arab Emirates (UAE) remains a pro-crypto region. By 2023, the country has become a major player in the global Bitcoin mining landscape with a combined BTC mining capacity of around 400 megawatts, contributing around 4% to the global hash rate of cryptoassets.
Therefore, the UAE has attracted many crypto companies. In May 2023, Chainalysis, a blockchain analytics company, established its regional headquarters in Dubai. Similarly, Blockdaemon, an institutional infrastructure provider, has expanded its presence in Abu Dhabi, which has been approved by the Abu Dhabi Global Market (ADGM), a major financial regulator.
To learn more: Which cryptocurrencies can you still mine at home?
The UAE regulatory environment struggles to balance innovation and compliance. In April 2023, the United Arab Emirates introduced a licensing program for crypto businesses, promoting regulatory clarity. However, this program is not mandatory for Dubai or the country’s free economic zones, reflecting a more differentiated approach to this regulation.
Moral of the story: Farmers and cryptocurrency miners don’t mix.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent information. This article aims to provide accurate and relevant information. However, readers are encouraged to check the facts for themselves and seek professional advice before making any decisions based on this content.
