- Abu Dhabi bans crypto mining on farms, citing misuse of agricultural land.
- Violators of the new regulation in Abu Dhabi face penalties of up to Dh10,000.
- Venezuela disconnects crypto mines from the power grid, seizing over 2,000 machines.
In a significant move to curb the misuse of agricultural sites and control excessive electricity consumption, the Abu Dhabi Agriculture and Food Safety Authority (Adafsa) has announced a strict prohibition on cryptocurrency mining in farms. The announcement was made on Thursday, as confirmed by local media Khaleej Times.
Crypto mining, the mechanism for validating transactions and minting new crypto assets like Bitcoin, is known for its high electricity consumption due to the powerful computers it requires. According to the report, Adafsa’s decision comes amid concerns that the energy-intensive process of mining cryptocurrencies leads to unsustainable spikes in electricity costs, which could jeopardize farm operations.
The authority has made it clear that farmhouses are not equipped to handle the high power demands associated with cryptocurrency mining. Moreover, Adafsa’s advisory stressed that farms are designated for agriculture, and repurposing them for mining disrupts their intended use.
In parallel, violators of this new regulation may face hefty penalties, with fines reaching up to Dh10,000 or $2,722.57. This measure is part of a larger initiative to promote sustainable energy use and proper land utilization across agricultural sites.
While the UAE permits blockchain-related activities, it enforces strict rules to ensure they are carried out responsibly and within the appropriate settings.
In a related development, the Venezuelan Ministry of Electric Power has similarly taken a firm stance against cryptocurrency mines, disconnecting them from the power grid. This action is part of Venezuela’s broader crackdown on crypto mining, which has already resulted in the confiscation of over 2,000 mining machines and the indictment of several officials.
Both Abu Dhabi and Venezuela’s stringent policies reflect a growing trend of regulatory bodies worldwide taking steps to address the environmental and infrastructural challenges posed by the growing cryptocurrency mining industry.
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