Observer Guardian UAE Bans Illegal Cryptocurrency Mining and Imposes Massive Fine for Violation

UAE Bans Illegal Cryptocurrency Mining and Imposes Massive Fine for Violation

The UAE just took a pretty strong stance against crypto mining at least when it comes to farms. Authorities in Abu Dhabi have banned the practice outright and set the fine at 100,000 dirhams (around $27,000). If someone does it again, the penalty doubles. On top of that, farms caught mining can have their electricity cut, their equipment seized, and even lose access to government support programs like subsidies.

The reasoning is pretty straightforward. Mining chews through huge amounts of electricity and cooling, which clashes with the country’s push for sustainability and food security. Farms aren’t set up for that kind of power drain, and when you think about it, it makes sense if they need those resources for irrigation and crops, not for running racks of mining rigs.

What’s striking is how much the fine has jumped. Last year the penalty was capped at about 10,000 dirhams, so this new move is almost a tenfold increase. That’s a signal that the government’s patience with unauthorized mining has run out, especially given the stress it can put on infrastructure.

It’s not just about money, either. The ban underlines a broader message. If you’re going to operate in crypto here, you need to follow the rules and stay in line with national priorities like sustainable energy and food production. For farmers, the risks are now way higher not just financially, but legally too. Both landowners and tenants can get hit, which means even renting a plot and sneaking in some rigs could backfire badly.

Bigger picture, this could ripple outward. Other countries are already rethinking whether proof of work mining is worth the environmental and power costs, so we might see more targeted bans or restrictions like this. If crypto miners want to stay ahead, they’ll probably have to lean harder into renewable energy or less resource-heavy systems like proof of stake.

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