The Abu Dhabi Agricultural Authority, United Arab Emirates, has issued a notice to farmers prohibiting…
The Abu Dhabi Agricultural Authority in the United Arab Emirates has issued a notice to farmers banning cryptocurrency mining on farms.
The Abu Dhabi Agriculture and Food Safety Authority has reportedly told farmers that farms cannot be used as a cryptocurrency mining site. The government agency said this activity constitutes “misuse of the farm for purposes other than those intended.”
Additionally, those who violate this rule will face fines of up to AED 10,000, worth approximately $2,722.
Cryptocurrency mining is a popular way for users to earn cryptocurrencies by confirming transactions on blockchain-based networks. In exchange for solving mathematical puzzles and securing the network, miners are rewarded with new cryptocurrencies.
Although cryptocurrency mining is banned on farms, the UAE became a pro-Bitcoin mining country in the Middle East in 2023. At the time, data showed that the combined Bitcoin mining capacity in the UAE united was around 400 megawatts, or 4% of Bitcoin’s global capacity. hash rate. .
Meanwhile, although the UAE is openly supportive of cryptocurrencies, other Middle Eastern countries, such as Kuwait, are less welcoming towards digital assets.
On July 18, Kuwait banned all operations involving cryptocurrencies, including mining. Kuwait’s top financial regulator, the Capital Markets Authority (CMA), has confirmed an “absolute ban” on cryptocurrency use cases, including cryptocurrency mining.
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Despite the positions of other countries, the UAE remains a hub for many cryptocurrency-focused projects. In May alone, blockchain analytics firm Chainalysis and enterprise infrastructure provider Blockademon expanded to the UAE.
On May 8, Chainalysis established its regional headquarters in Dubai. The company works with local government agencies and advises on organizational development, with the aim of driving innovation.
On May 13, Blockdaemon opened a new office in Abu Dhabi, expanding its presence in the UAE. The company said the expansion plans had been approved by the Abu Dhabi Global Market, one of the country’s financial regulators.
Native cryptocurrency projects also believe that the UAE has been very progressive when it comes to cryptocurrencies. In a previous interview with Cointelegraph, Chainlink co-founder Sergey Nazarov said Dubai’s government, regulators, legal system and economy are attractive to the cryptocurrency space.
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