The Abu Dhabi Agricultural Regulator has banned the use of farms for cryptocurrency mining. Violators face a fine of 100,000 dirhams and confiscation of equipment.
Abu Dhabi bans cryptocurrency mining on farms
The Abu Dhabi Agriculture and Food Safety Agency (ADAFSA) has announced a ban on the use of agricultural land for cryptocurrency mining. Violators will be punished with a fine of 100,000 dirhams ($27,229), as well as confiscation of equipment and disconnection from the electricity grid.
Reasons for the ban
The regulator explained that mining contradicts the policy of sustainable development and goes beyond the permitted economic use of farms. According to ADAFSA, such activities undermine land use rules in the region.
Energy Consumption and Environmental Impact
Mining is energy-intensive, a concern worldwide. Critics point to the negative environmental impact, while proponents point to the potential for mining to integrate with renewable energy. In 2023, over 50% of the energy used for Bitcoin mining came from renewable sources, including hydro and geothermal energy.
Research on environmental benefits
In 2024, scientists published a study that showed the potential for using methane from landfills to generate electricity and mine Bitcoin. Similar studies have shown that proof-of-work can reduce greenhouse gas emissions globally. Meanwhile, debates are ongoing in the US, with lawmakers proposing new restrictions to reduce the environmental impact and noise pollution of mining.
Related: Wisconsin Considers Bill to Exempt Mining, Staking from Licenses
