Abu Dhabi Imposes Strict Ban on Crypto Mining in Farmlands, Slaps AED 100,000 Fine

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

  • The prohibition expressly targets the use of agricultural land for crypto mining, an activity considered outside permitted economic uses for farms under current regulations.

  • The decision follows the detection of multiple cases where farmland was being misused to house energy-intensive mining equipment.

  • 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:

  1. Fine of AED 100,000 — to be imposed on the first violation.

  2. Double fine for repeat offenses — i.e. AED 200,000 and beyond for subsequent violations.

  3. Suspension of farm services and support — ADAFSA will withdraw any services or assistance programs linked to non-compliant farms.

  4. Electricity disconnection — power supply can be cut off to the farm engaging in prohibited mining.

  5. Confiscation of mining equipment — any hardware used for the crypto mining activity will be seized.

  6. 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

  • 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.

  • The upgrade in penalties highlights the increasing seriousness with which the Abu Dhabi government is treating misuse of agricultural land.

Who Is Affected

  • Both farm owners and tenants will be held accountable if crypto mining is detected on agricultural land they control.

  • Non-compliance may jeopardize ongoing support or subsidies that farms usually receive under ADAFSA programs.

Justification & Government Position

  • ADAFSA emphasizes that the ban is essential to protect the sustainability and intended use of agricultural land.

  • It also cites concerns over resource misuse, particularly electricity consumption, which is significant in crypto mining operations.

  • 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

  • Monitoring and inspection intensification of farms across Abu Dhabi.

  • Legal challenges or appeals from affected farmers or tenants.

  • Effects on the crypto mining community—whether other regions follow similar restrictions.

  • Whether exemptions or licensing regimes may be introduced for “green mining” (if powered by renewables) in the future.

  • Impact on farm productivity and farmer sentiment, especially among those dependent on subsidies or support programs.