UAE Bans Cryptocurrency Mining on Agricultural Farms
Date: 2024-05-27 Author: Henry Casey Categories: IN WORLD
Ban on Mining
The authorities of the United Arab Emirates (UAE) have introduced a ban on cryptocurrency mining at agricultural enterprises. According to information provided by local publication Khaleej Times, the Agriculture and Food Safety Authority in Abu Dhabi has issued a regulation banning the use of farms for cryptocurrency mining.
Reasons for the Ban
The main reason for this decision was the significant increase in electricity consumption caused by cryptocurrency mining. The agency noted that the use of agricultural farms for mining is incorrect and contrary to their main purpose.
Penalties
There are fines for violators of the new rule. According to the resolution, which the publication has reviewed, illegal mining on agricultural farms will be punishable by a fine of up to 10,000 dirhams (about $2,720 at the time of writing).
Position of the Authorities
Despite the ban on the use of agricultural farms for mining, the UAE authorities generally support the development of the cryptocurrency industry. According to some sources, the UAE government even owns a significant amount of Bitcoin (about 59,000 BTC).
Development of the Cryptocurrency Industry in the UAE
In April 2023, the UAE financial regulator introduced new licensing for cryptocurrency companies, indicating a positive attitude towards cryptocurrencies. It is also known that OpenAI plans to attract investments from the UAE, which confirms the country’s interest in the development of modern technologies and the digital economy.
The ban on cryptocurrency mining on UAE agricultural farms aims to prevent excessive electricity consumption and misuse of farm capacity. At the same time, the authorities continue to support the development of the cryptocurrency industry, demonstrating a balanced approach to regulating this sector.
