Abu Dhabi Warns Farmers Against Crypto Mining as UAE Blooms as Bitcoin Hub
Summary:
The Abu Dhabi Agriculture and Food Safety Authority has issued a directive to prohibit farmers from conducting cryptocurrency mining operations on their farmland. Despite the ban on such activities in farming spaces, the UAE has shown considerable growth as a supportive domain for Bitcoin mining in the Middle East. In contrast, other countries in the region like Kuwait have implemented an outright ban on all cryptocurrency-related activities.
Farmers in Abu Dhabi, United Arab Emirates (UAE) have been instructed by the local agricultural authority, the Abu Dhabi Agriculture and Food Safety Authority, not to use their farmland for cryptocurrency mining operations. The directive labels such activities as a deviation from the intended purpose of the farmland. Violation of this policy can result in fines amounting to around 10,000 UAE dirhams or approximately $2,722.
Mining cryptocurrency, a transaction verification process on blockchain networks where miners are rewarded with generated cryptocurrency for solving mathematical problems and safeguarding the networks, has been increasingly embraced by users. Despite banning farm-based cryptocurrency mining, the UAE has seen significant growth to become a supportive Bitcoin mining region in the Middle East by 2023. Reports showed the national Bitcoin mining capacity reached around 400 megawatts, equivalent to 4% of Bitcoin's worldwide hash rate.
However, the acceptance of cryptocurrency is not uniform across the Middle East. Kuwait, for instance, has shown resistance to digital assets, with a total ban on all cryptocurrency activities, including mining, enforced on July 18. This outright ban was confirmed by the nation's primary financial regulatory body, the Capital Markets Authority (CMA).
Despite differing views, several crypto-centric initiatives have found a home in the UAE. The month of May saw two crypto firms, blockchain analytics firm Chainalysis and institutional infrastructure provider Blockdaemon, extending their operations into the UAE. Chainalysis set up its regional office in Dubai in an effort to engage with local government bodies and assist in regulatory development in the hopes to spur innovation. About a week later, Blockdaemon announced the inauguration of their new office in Abu Dhabi, confirmed by one of the nation's finance regulators, the Abu Dhabi Global Market (ADGM).
Sergey Nazarov, co-founder of Chainlink, in an earlier interview with Cointelegraph, commended the UAE government, legal system, and economic situation for being welcoming to the crypto domain.
Recent news also mentioned the Hong Kong streaming company planning to invest $100M in cryptocurrency and Worldcoin receiving sanctions under the Asia Express.
Published At
5/24/2024 4:07:30 PM
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