UAE Agriculture Authority Bans Cryptocurrency Mining on Farms
UAE Agriculture Authority Bans Cryptocurrency Mining on Farms
The Abu Dhabi Agriculture and Meals Security Authority of UAE issued a brand fresh advisory on Thursday prohibiting the utilize of farms for cryptocurrency mining. Farmers caught participating in such actions face fines of up to 10,000 UAE dirhams (roughly $2,722).
The Abu Dhabi Agriculture and Meals Security Authority advisory explicitly acknowledged that farms can’t be repurposed for cryptocurrency mining.
Cryptocurrency Mining is a “Misuse of the Farm”
The federal government agency considers this a “misuse of the farm for capabilities rather than its meant utilize.” The prohibition is enforced with penalties for non-compliance, imposing fines of up to 10,000 UAE dirhams for these caught mining cryptocurrencies on farms.
Cryptocurrency mining entails the usage of computational energy to resolve advanced mathematical puzzles and validate transactions on blockchain networks. A success miners are rewarded with newly minted cryptocurrency, making mining a profitable endeavor for numerous. The vitality-intensive process possible influenced the choice to limit such actions on agricultural land to retain its meant utilize.
#UAE authority warns of Dh10,000 dazzling for #crypto mining on farms.
The process entails the utilize of extremely refined computer systems that bask in a huge deal of vitality. https://t.co/3KQhfNhRTV
— Khaleej Instances (@khaleejtimes) Would possibly perchance perchance perchance 23, 2024
Despite this particular prohibition, the UAE has established itself as a supportive jurisdiction for Bitcoin mining. In 2023, info indicated that the UAE accounted for around 400 megawatts of Bitcoin mining skill, representing 4% of the world hash price. This makes the UAE one of many leading Bitcoin mining hubs within the Heart East, demonstrating a favorable environment for crypto actions out of doorways of agricultural contexts.
Whereas the UAE maintains a most regularly certain stance in direction of cryptocurrency, other countries bask in adopted stricter regulations. As an illustration, Kuwait banned all cryptocurrency-connected operations, including mining, as of July 18, 2023.
UAE Composed A Crypto-Friendly Nation
In accordance to a Dubai Multi Commodities Centre (DMCC) memoir, the UAE recorded $25 billion in crypto transactions in 2022 and is now pursuing additional funding by adopting accommodative regulatory policies.
Komodo CTO Kadan Stadlemann furthermore no longer too long ago praised the United Arab Emirates (UAE) for its political stability and monarchy, which he believes manufacture a extra favorable environment for crypto corporations than US regulatory challenges.
The Heart East is experiencing a surge in crypto adoption, with the life like on a conventional foundation quantity of merchants surpassing 500,000 in February 2024, a 51% boost from the previous one year. The UAE leads the suppose in adoption per capita, with top on a conventional foundation energetic users reaching 106,111 in 2024. Despite its better population, Saudi Arabia has a slight bit better top on a conventional foundation energetic users.
The growth in adoption is attributed to evolving views on how crypto aligns with Islamic beliefs, with attitudes changing as cryptocurrencies turn into extra regulated.
Bitget Study forecasts that the amount of on a conventional foundation energetic crypto users within the Heart East will proceed to upward push, reaching 700,000 by the end of 2024. The UAE is predicted to turn into a central hub for cryptocurrency talent, capital, and enterprises, increasing its world crypto impact.
Source : cryptonews.com
