The Organization for Agriculture and Food Safety in Abu Dhabi is banning cryptocurrency mining on farms. Farmers were informed about the fines they face for violating these bans – the penalty can be up to AED 10,000, or the equivalent of USD 2,722. The government agency considered such activity to be “improper use of the farm for purposes inconsistent with its intended purpose.”
Cryptocurrency mining ban on farms in the UAE – why do they ban farmers from mining?
It is worth starting with the fact that the United Arab Emirates is one of the Middle Eastern countries that is most open to digital assets and Web3. In Arab culture, cryptocurrencies have quite negative connotations due to their incompatibility with both the Quran and Sharia Law. The United Arab Emirates is therefore an exception that remains a hub for many cryptocurrency-focused projects.
The ban on cryptocurrency mining on farms does not change the fact that the UAE introduced regulations favoring BTC mining in 2023. At that time, the UAE's mining power was around 400 megawatts, which represented 4% of global BTC mining power. A lot for a Muslim country. It is worth noting that other Middle Eastern countries are not so favorable to digital assets. For example, in July 2023, Kuwait completely banned all cryptocurrency operations, including mining.
The United Arab Emirates is the cryptocurrency center in the Middle East
The ban on cryptocurrency mining on farms is probably caused by the desire to unify the mining industry, which is regularly growing every quarter. Only in May this year, companies such as Chainalysis and Blockdeamon established their Middle Eastern branches in Abu Dhabi in the UAE. The UAE wants to be a cryptocurrency haven in the Middle East and this is a direct response to the aggressive policy of the American regulator.
This approach is already working, as an increasing number of companies related to the cryptocurrency and Web3 industries are becoming interested in the Middle East. For this reason, the United Arab Emirates will play an increasingly important role in the world of digital assets and blockchain technologies.
