Abu Dhabi, UAE — In a decisive move to protect agricultural land and food security, the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) has officially prohibited cryptocurrency mining on farmland. Violators face severe penalties, including a fine of AED 100,000, which doubles for repeat offenses.
What the Ban Covers & Why It Was Introduced
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The prohibition expressly targets the use of agricultural land for crypto mining, an activity considered outside permitted economic uses for farms under current regulations.
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The decision follows the detection of multiple cases where farmland was being misused to house energy-intensive mining equipment.
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ADAFSA clarified that activities on farms must be strictly limited to agricultural and livestock operations. Any non-agricultural use, especially one that stresses resources or drains electricity, is considered a violation.
Penalties & Enforcement Measures
Offenders will face a multi-layered penalty regime, including:
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Fine of AED 100,000 — to be imposed on the first violation.
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Double fine for repeat offenses — i.e. AED 200,000 and beyond for subsequent violations.
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Suspension of farm services and support — ADAFSA will withdraw any services or assistance programs linked to non-compliant farms.
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Electricity disconnection — power supply can be cut off to the farm engaging in prohibited mining.
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Confiscation of mining equipment — any hardware used for the crypto mining activity will be seized.
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Legal referral — offenders may be referred to relevant legal authorities for further action as per existing laws.
These measures are designed to discourage misuse and are part of a broader push to ensure farmland remains dedicated to food production and is not repurposed for resource-intensive illicit uses.
Comparison with Past Regulations
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In 2024, authorities had issued warnings that crypto mining on farms could attract fines of up to AED 10,000. The new fine of AED 100,000 marks a 900% increase compared to the earlier cap.
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The upgrade in penalties highlights the increasing seriousness with which the Abu Dhabi government is treating misuse of agricultural land.
Who Is Affected
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Both farm owners and tenants will be held accountable if crypto mining is detected on agricultural land they control.
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Non-compliance may jeopardize ongoing support or subsidies that farms usually receive under ADAFSA programs.
Justification & Government Position
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ADAFSA emphasizes that the ban is essential to protect the sustainability and intended use of agricultural land.
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It also cites concerns over resource misuse, particularly electricity consumption, which is significant in crypto mining operations.
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The agency has issued a call to all agricultural stakeholders to refrain from non-permitted activities and comply with the law.
What to Watch Next
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Monitoring and inspection intensification of farms across Abu Dhabi.
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Legal challenges or appeals from affected farmers or tenants.
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Effects on the crypto mining community—whether other regions follow similar restrictions.
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Whether exemptions or licensing regimes may be introduced for “green mining” (if powered by renewables) in the future.
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Impact on farm productivity and farmer sentiment, especially among those dependent on subsidies or support programs.