UAE Agriculture Authority Bans Cryptocurrency Mining on Farms
Crypto mining farms can receive a fine up to 10,00 dirhams or $2722 in Abu Dhabi. The Abu Dhabi Agriculture authority for UAE issued a notification for advising farmers about prohibiting all sorts of crypto mining activities on the farming land.
As per the reporters, the Agriculture and Food Safety Authority has notified farmers that they cannot allow miners to set up operations on the premises.
Misuse of Farms for Crypto Mining
The government officials have noticed that this activity is viewed as a misuse of farms and classified as a legal violation for the land grants that are going away from the intended utility.
At the same time, the regulators noted that any parties caught with violating the rule may face a penalty of 10 thousand dirhams that are around $2722. For contest, it is important to note that crypto mining is a popular method for investors to earn income in the form of cryptocurrencies.
Miners have to solve mathematical puzzles and secure a blockchain network in order to receive rewards in the form of newly minted cryptocurrencies. However, crypto mining is now banned by regulators in Abu Dhabi by UAE authorities.
The notification has emerged at a time when UAE has been working on becoming as one of the Bitcoin-pro mining locations in the Middle East since 2023. Data projections indicated that UAE’s Bitcoin mining capacity of UAE has reached 400 megawatts or 4 percent of the global hash rate.
UAE as a Crypto-Friendly Nation
At a time when UAE has continued to consolidate its position as a crypto-friendly nation other nations in the region such as Kuwait have remained neutral towards digital assets. On 18th July, Kuwait banned all crypto operations within its jurisdiction including crypto mining.
Capital Markets Authority (CMA) the leading regulatory agency of UAE has imposed a blanket ban on all crypto utilities including mining activities.
Regardless of regulations in Kuwait, UAE has retained its position as a crypto hub and attracted various crypto startups. In May blockchain analytics firm Chainalysis and Blockdeamon launched new projects in the region. On 8th May, Chainalysis set up regional headquarters in Dubai.
The firm is working in tandem with local government agencies and offered advice on regulatory development aiming to harbor innovation and fintech development in the sector.
Blockdaemon develops a new office in Abu Dhabi on 13th May and expanded the presence in UAE. The firm noticed that their expansion plans are approved by the Global Market of Abu Dhabi one of the financial regulators of the sector.
Local crypto projects also opined that UAE has continued to maintain a progressive stance on the topic of cryptocurrencies. Chainlink co-founder told Cointelegraph in a recent interview that regulatory agencies, legal systems, and Dubai economics is well-suited for crypto activities.
Blockdaemon Gets Regulatory Approval to Operate in Abu Dhabi
Blockdaemon has received a regulatory approval in UAE to set up a new office in Abu Dhabi. The firm is going to work on the development of the Web 3.0 sector and make efforts to increase commercial adoption of the latest technology.
A Cointelegraph article covering the matter indicated that Blockdaemon has indicated that the firm is set to expand its services in UAE with the inauguration of a new office in the region.
The firm has shared expansion plans in accordance with the local registration authority of the Abu Dhabi Global Market (ADGM). The declaration was shared with Cointelegraph on 13th May.
The firm has revealed that the mission to design and offer Web 3.0 infrastructure options for local businesses in the UAE. The firm is also working on a native node and validator infrastructure solution via MPC wallets that is self-hosted.
The CIO of Blockdaemon noticed that the decision marks a significant stride for the firm. The executive further added that he views expansion in the UAE as part of strategic alignment. He stated that the firm was committed to actively engage in advancing the Web 3.0 revolution and broader MENA sector.
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