The Abu Dhabi Agriculture and Food Safety Authority (AFSA) has imposed restrictive measures on farmers mining crypto. The United Arab Emirates(UAE) regulators noted that the crypto miners used agricultural land to mine digital assets.
In its advisory report, the AFSA urged farmers to avoid turning their farms into crypto-mining sites. The regulators claimed that individuals engaging in crypto mining on their farms violated the Land Act.
Abu Dhabi Restricts Crypto Mining on Farms
The AFSA argued that farmers mining crypto used the farm for purposes other than the intended use. Compared to electricity consumed in agricultural practices, crypto mining has higher computation power, consuming large amounts of electricity.
The authority confirmed that misuse of the farm was punishable by law, and individuals engaging in such acts would face legal charges. The AFSA stated that farmers violating the the Land Act will receive fines worth 10,000 UAE dirhams totaling to $2722.
Crypto mining activities have recently gained popularity in the Middle East due to the region’s suitability. As the UAE becomes the hotspot for crypto and blockchain technologies, businesses have show interest in expandingto the region.
UAE Adopts Friendly Crypto Regulations
In 2023, the UAE was ranked as a pro-crypto mining zone in the Arab country. The report shows that Bitcoin’s mining capacity reached 400 megawatts, representing 4% of Bitcoin’s global hash rate.
The attractiveness of the UAE crypto industry has encouraged leading security firm Chainalysis to relocate its headquarters to the region. On May 13, Blockdaemon revealed plans to expand to the UAE to offer Web3 solutions to retail and institutional customers.
To become a crypto-friendly state, the UAE established a new regulatory agency, the Virtual Assets Regulatory Authority (VARA), to oversee crypto activities. The UAE crypto ambition has encouraged neighboring countries, such as the Kingdom of Saudi Arabia, to welcome emerging technologies like Web3.
A few months ago, the government of Saudi Arabia sealed a partnership deal with Outlier Ventures to launch a Web3 accelerator program. report shows Saudi Arabia has partnered with fast-paced crypto firms, including Andreessen Horowitz (A16z) and Animoca Brand, to attain its Web3 objective.
Benefits of Web3 and Crypto Technology
The Kingdom of Saudi believes that Web3 technology has massive potential to support attaining its 2030 vision for economic diversification. The Kingdom also plans to leverage the power of Web3 to redefine its gaming industry.
As Saudi and UAE seek to embrace crypto and blockchain technologies, their rival country, Kuwait, has imposed restrictive measures on digital assets.
In July 2023, the Kuwait authority issued an outright ban on using crypto in the region. The Kuwait Capital Market Authority (CMA) issued an absolute prohibition on crypto mining, payments, investments, and other crypto-related activities.
The CMA directed the country regulators to abolish license issuance to virtual assets service providers (VASPs) seeking to operate in Kuwait. The regulators advised the Kuwait residents to avoid investing in risky assets such as crypto.
The CMA claimed that cryptocurrency lacks legal status and is not supported by the government of Kuwai
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