The Abu Dhabi Agriculture and Meals Security Authority of UAE issued a brand new advisory on Thursday prohibiting using farms for cryptocurrency mining. Farmers caught participating in such actions face fines of up to 10,000 UAE dirhams (roughly $2,722).
The Abu Dhabi Agriculture and Meals Security Authority advisory explicitly acknowledged that farms can’t be repurposed for cryptocurrency mining.
Cryptocurrency Mining is a “Misuse of the Farm”
The federal government company considers this a “misuse of the farm for purposes other than its intended use.” The prohibition is enforced with penalties for non-compliance, imposing fines of up to 10,000 UAE dirhams for these caught mining cryptocurrencies on farms.
Cryptocurrency mining entails utilizing computational energy to unravel complicated mathematical puzzles and validate transactions on blockchain networks. Profitable miners are rewarded with newly minted cryptocurrency, making mining a profitable endeavor for a lot of. The energy-intensive course of seemingly influenced the choice to limit such actions on agricultural land to protect its supposed use.
#UAE authority warns of Dh10,000 advantageous for #crypto mining on farms.
The method entails using extremely refined computer systems that eat quite a lot of vitality. https://t.co/3KQhfNhRTV
— Khaleej Occasions (@khaleejtimes) Might 23, 2024
Regardless of this particular prohibition, the UAE has established itself as a supportive jurisdiction for Bitcoin mining. In 2023, knowledge indicated that the UAE accounted for round 400 megawatts of Bitcoin mining capability, representing 4% of the worldwide hash fee. This makes the UAE one of many main Bitcoin mining hubs within the Center East, demonstrating a good atmosphere for crypto actions exterior of agricultural contexts.
Whereas the UAE maintains a usually constructive stance in direction of cryptocurrency, different nations have adopted stricter rules. As an illustration, Kuwait banned all cryptocurrency-related operations, together with mining, as of July 18, 2023.
UAE Nonetheless A Crypto-Pleasant Nation
In accordance with a Dubai Multi Commodities Centre (DMCC) report, the UAE recorded $25 billion in crypto transactions in 2022 and is now pursuing additional funding by adopting accommodative regulatory insurance policies.
Komodo CTO Kadan Stadlemann additionally lately praised the United Arab Emirates (UAE) for its political stability and monarchy, which he believes create a extra favorable atmosphere for crypto companies than US regulatory challenges.
The Center East is experiencing a surge in crypto adoption, with the typical every day variety of merchants surpassing 500,000 in February 2024, a 51% improve from the earlier yr. The UAE leads the area in adoption per capita, with peak every day lively customers reaching 106,111 in 2024. Regardless of its bigger inhabitants, Saudi Arabia has barely increased peak every day lively customers.
The expansion in adoption is attributed to evolving views on how crypto aligns with Islamic beliefs, with attitudes altering as cryptocurrencies turn into extra regulated.
Bitget Analysis forecasts that the variety of every day lively crypto customers within the Center East will proceed to rise, reaching 700,000 by the tip of 2024. The UAE is predicted to turn into a central hub for cryptocurrency expertise, capital, and enterprises, rising its international crypto affect.