Today's Edition
ASILA AL BADI (ABU DHABI)
Abu Dhabi Agriculture and Food Safety Authority has reinforced a ban on cryptocurrency mining on farms after finding multiple cases of land being used to host mining rigs.
The move took effect on September 30 and targets both owners and tenants, with fines of Dh100,000 that double for repeat offences, suspension of government support, power cut-offs and the seizure of equipment. Violators will also be referred to the relevant authorities for legal action.
Mining uses banks of specialised, powerful computers to validate crypto transactions on blockchain networks in exchange for digital currency rewards. As these computers run around the clock, the mining process consumes large amounts of electricity and generates excess heat.
ADAFSA says misuse of farms for mining threatens biosecurity and undermines agricultural sustainability. High power draw strains on-site infrastructure, and non-agricultural operations disrupt the purpose of the land, which under Abu Dhabi rules is reserved only for crop and livestock production.
The stance comes as the UAE climbs the global crypto league tables. The country ranks fifth in the Crypto Adoption Index 2025 with a score of 42.9 out of 60, close behind the US.
A July study by Mining Grid suggests that over the past year, the UAE has attracted around $34 billion (Dh124 billion) in crypto inflows, a 42% annual rise. It also estimates that the country is home to more than 500,000 daily crypto traders, with over 74% of residents aged 25-34 expressing interest in crypto and 21% planning to enter the market within a year.
Although cryptocurrency mining is legal in the UAE, it's not classified as a financial service but rather an industrial or IT activity. There is no standalone "mining licence", yet operators still need a business licence and an appropriate venue, and licensing varies depending on the emirate and business zone.
The legal status of mining depends on context. According to the Federal Tax Authority, if individuals mine for personal gain without a client, it's not considered a taxable activity, and input VAT can't be claimed. But if mining is done as a service for others, it is subject to VAT - 5% for local clients, and potentially zero-rated for international ones - if licensing and service contracts are in place.
While free zones like DMCC and RAK Digital Assets Oasis have welcomed crypto infrastructure firms, ADAFSA warns that farmland is not an option. The authority is calling on farm owners and tenants to comply immediately, reiterating that agricultural land must remain dedicated to food security, not blockchain infrastructure.
