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Abu Dhabi announces AED 100,000 fine for Bitcoin mining on farmland

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NEWS IN BRIEF
  • ADAFSA has banned cryptocurrency mining on farmland in Abu Dhabi, service suspensions for violations
  • The regulator cited sustainability and land-use policies as reasons for the prohibition, requiring farmland to remain dedicated to agriculture
  • Research suggests that, when integrated with energy recycling systems, crypto mining could reduce greenhouse gas emissions, though critics continue to raise environmental concerns

The Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) has prohibited the use of agricultural land for cryptocurrency mining. The regulator emphasized that farmland must be used solely for agricultural purposes to qualify for government services, subsidies, and utilities.

Violators face a 100,000 AED ($27,229) fine, suspension of municipal services, confiscation of mining hardware, and disconnection from the electrical grid, according to a statement released Tuesday. ADAFSA said that mining operations conflict with the emirate’s sustainability policies and violate existing land use regulations. “Such activities fall outside the scope of permitted economic uses defined by the authority and are not allowed on farmlands,” the statement read.

Environmental debate surrounding crypto mining

Crypto mining continues to generate debate over its ecological impact. Critics argue that mining consumes large amounts of energy and harms local ecosystems, while proponents highlight opportunities to integrate mining with energy recycling initiatives.

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Some research suggests mining could contribute to environmental efforts. In August 2024, a study titled “An integrated landfill gas-to-energy and Bitcoin mining framework” proposed converting methane from landfills into electricity via proof-of-work (PoW) mining, sequestering greenhouse gases in the process. Earlier research, including the 2023 paper “Bitcoin and the Energy Transition: From Risk to Opportunity,” suggested that mining could potentially reduce up to 8% of global emissions by 2030 through optimized energy use.

Despite potential benefits, lawmakers in the US have sought to regulate mining to reduce air, water, and greenhouse gas pollution, as well as noise from mining operations. Critics argue that stringent oversight remains necessary to mitigate ecological risks associated with large-scale crypto mining.

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