Image credit: ADAFSA

Disclaimer: This story was originally published on May 23, 2024.

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Operations using agricultural lands for mining cryptocurrency in Abu Dhabi could be fined up to more than $2,700 for farming digital assets, the local authority on biosecurity of the United Arab Emirates capital reportedly warned.

The Abu Dhabi Agriculture and Food Safety Authority told farmers that crypto mining cannot be done on farms as it could cause sharp spikes in electricity bills, local news outlet Khaleej Times reported on May 23. The ADAFSA advisory reportedly said:

“[Crypto mining] is considered a misuse of the farm for purposes other than its intended use.”

The recent advisory comes as the UAE emerged as a Bitcoin mining-friendly area. With a 400 megawatt (MW) operational BTC mining capacity, the second-largest Arab economy is the fastest-growing mining hub in the Middle East, a 2023 analysis by Hashrate Index finds. The country also generates about 3.7% of the global Bitcoin mining hash rate.

It remains to be seen how the recent prohibition could affect the UAE’s position as an ideal jurisdiction for mining operations, which was largely driven by semi-governmental projects and small-scale amateur deployments.

Marathon Digital Holdings and Phoenix Group are among the UAE’s largest crypto mining players.

Meanwhile, Oman is also making a name for itself in the realm of mining Bitcoin, led by operators including Exahertz International and Green Data City. According to Hashrate Index, Exahertz expects to have 275 MW running, while Green Data City plans to commission 150 MW, which potentially gives Oman 2.6% of the global BTC mining hash rate.