Agricultural Regulator Prohibits Crypto Mining Operations on Abu Dhabi Farmland

The Abu Dhabi Agriculture and Food Safety Authority announced a ban on cryptocurrency mining activities on agricultural land in the emirate. According to Cointelegraph, violators face a fine of 100,000 AED ($27,229). The authority will suspend municipal services, confiscate mining hardware, and disconnect farmland from the electrical grid for non-compliant operations.

ADAFSA stated the decision applies to both farm owners and tenants. The regulator said using farmland for crypto mining conflicts with sustainability policies and existing land use provisions. The authority confirmed these activities fall outside permitted economic uses defined for agricultural land.

Penalties Increase 900 Percent from Previous Year

The enforcement action follows violations detected at several farms across Abu Dhabi. Khaleej Times reports that authorities warned farm operators in 2024 with fines up to 10,000 AED for similar violations. The 2025 penalty represents a 900 percent increase from the previous year.

The regulation targets the misuse of subsidized agricultural electricity rates. We recently reported that the US Bitcoin mining industry generates more than $4.1 billion in gross product annually and supports over 31,000 jobs nationwide, demonstrating the sector's economic scale. However, Abu Dhabi authorities determined that mining operations on agricultural land threaten food security and biosecurity standards.

Repeat offenders face doubled penalties. The authority will refer violators for additional legal action beyond the initial fines and equipment confiscation. ADAFSA emphasized that farm owners and workers in crop and livestock sectors must avoid activities outside approved agricultural operations.

UAE Maintains Pro-Crypto Stance Outside Agriculture

The Abu Dhabi ban creates a specific restriction within the broader UAE crypto framework. Coinpedia notes the UAE maintains one of the highest crypto adoption rates globally in 2025. The government has legalized trading in major cryptocurrencies including Bitcoin and Ethereum.

Dubai's Virtual Asset Regulatory Authority set compliance deadlines for service providers in June 2025. These regulations include anti-money laundering protocols, enhanced security measures, and transparent reporting requirements. The government signed a Memorandum of Understanding with Crypto.com in July 2025 to integrate digital payment systems.

The farmland mining ban does not affect legal mining operations in other UAE locations. Mining outside agricultural zones remains legal under clear regulatory frameworks. The government holds approximately 6,300 Bitcoin through its state-owned mining company, ranking as the sixth-largest Bitcoin holder globally.

The restriction reflects growing global scrutiny of mining operations that access subsidized resources. Similar regulations have emerged in other jurisdictions where miners sought preferential electricity rates. The UAE demonstrates that governments can support cryptocurrency adoption while protecting specific economic sectors from unauthorized resource use.

The emirate's approach separates agricultural preservation from digital asset development. Free zones in Abu Dhabi and Dubai continue attracting mining companies through tax advantages and streamlined regulations. Major firms established operations through partnerships with government-affiliated entities to access industrial power rates rather than agricultural subsidies.