Agricultural regulator issues fines and suspends services for violators
The Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) has announced a ban on using agricultural land for cryptocurrency mining, warning that farms must be reserved solely for agricultural purposes to remain eligible for government services, subsidies, and utilities.
Heavy Penalties for Crypto Mining on Farmland
Under the new directive, violators will face a fine of 100,000 AED ($27,229). In addition, ADAFSA will suspend municipal services, confiscate mining hardware, and disconnect electricity to the farmland.
The regulator stressed that crypto mining activities conflict with sustainability policies in the region and violate permitted land use provisions. “Such activities fall outside the scope of permitted economic uses defined by the authority and are not allowed on farmlands,” the statement read.
Environmental and Policy Concerns
Crypto mining has long drawn scrutiny for its high energy consumption. Authorities in Abu Dhabi highlighted that diverting agricultural resources toward mining undermines sustainability goals in the UAE, where water and energy conservation are critical priorities.
Globally, regulators are tightening oversight on mining due to its environmental impact. Critics argue that mining increases emissions and strains local utilities, while supporters point to opportunities for recycling energy and reducing waste.
Research Suggests Potential Environmental Benefits
Despite concerns, some studies suggest that crypto mining can integrate with renewable and waste-to-energy systems. For instance, research published in 2024 introduced a landfill-gas-to-energy and Bitcoin mining framework, which converts methane emissions into electricity. By capturing harmful gases from waste sites, such systems can both generate power and reduce greenhouse gas emissions.
Earlier research has also argued that proof-of-work mining could cut global emissions by up to 8% by 2030 if paired with renewable energy sources like hydroelectric, geothermal, and flared gas.
The UAE’s latest move underscores a strict stance on land use, signaling that agriculture and food security remain top priorities over industrial or financial activities on farmland. While debate continues globally over the environmental impact versus potential benefits of mining, Abu Dhabi has made clear that crypto mining has no place on its agricultural lands.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.