UAE Imposes Fines for Cryptocurrency Mining on Farms

The Abu Dhabi Agriculture and Food Safety Authority (UAE) has issued a warning regarding the illegality of cryptocurrency mining on farms, as reported by Khaleej Times.

The agency emphasized that mining could lead to a sharp increase in electricity bills.

“This activity is considered an improper use of the farm for purposes other than its intended function,” the publication quotes the decree.

The Authority specified that violations could incur fines of up to 10,000 dirhams (~$2723).

Bitcoin and other digital assets mined using the Proof-of-Work algorithm consume a significant amount of electricity, with energy costs comprising a large portion of expenses. To reduce these costs, cryptocurrency miners seek access to the cheapest possible electricity sources.

In 2023, experts from Luxor examined the specifics of mining in the UAE. Jaran Mellerud and Erik Vera noted that subsidized rates for agricultural enterprises ($0.012 per kWh) are even lower than those set for residents ($0.02 per kWh) and significantly less than the rates for industrial enterprises — $0.073-0.099 per kWh.

Earlier, Iranian authorities introduced prison sentences for repeat offenses in illegal mining using subsidized electricity to combat the practice.