Abu Dhabi Bans Cryptocurrency Mining on Farms to Safeguard Agricultural Land

The Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) has announced a ban on cryptocurrency mining activities on agricultural land, stressing that farms must be used strictly for farming and livestock purposes. The move comes after inspectors found violations where agricultural properties were being converted into makeshift data centres for digital currency mining.

 

ADAFSA said offenders will face a fine of Dh100,000, which doubles for repeat violations. Authorities can also suspend government support services to the farm, disconnect electricity supplies, confiscate mining equipment and refer cases to court.

 

Why Farms are Being Used for Mining

Cryptocurrency mining is a power-hungry process that requires large numbers of specialised computers running around the clock to solve complex puzzles and validate blockchain transactions. In return, operators are rewarded with coins such as Bitcoin.

 

While mining typically happens in data centres or industrial facilities, some landowners in Abu Dhabi and elsewhere have attempted to set up mining farms in barns, sheds or unused agricultural plots. Farmers are sometimes drawn to mining because:

 

• Agricultural land offers cheap, spacious facilities to host large numbers of machines.

• Some farms enjoy subsidised electricity, which makes mining more profitable if power is diverted away from irrigation or livestock use.

• Remote rural locations may attract operators who hope to avoid regulatory scrutiny.

 

However, authorities argue that such operations undermine the very purpose of agricultural land. “Farm properties are designated exclusively for food production and livestock rearing. Using them for cryptocurrency mining not only misuses resources but also threatens sustainability and biosecurity,” ADAFSA said in a statement.

 

Environmental and Policy Concerns

Crypto mining consumes enormous amounts of electricity and generates heat, requiring powerful cooling systems. Globally, mining operations have been criticised for their environmental impact. By banning mining on farms, Abu Dhabi is ensuring that farmland is not repurposed into energy-intensive industrial sites, while protecting government subsidies intended to support agriculture.

 

Wider Context

Although the ban targets farmland specifically, it does not outlaw cryptocurrency mining across Abu Dhabi entirely. Industrial or commercial zones may still host mining operations if they comply with licensing and energy regulations. The focus, officials emphasise, is on responsible land use and ensuring that agricultural resources are directed toward food security rather than speculative digital assets.

 

ADAFSA urged farm owners and tenants to comply with the regulation and report any unauthorised activities, warning that repeat offenders would face escalating penalties and potential criminal liability.

 

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