- The United Arab Emirates has been emerging as a BTC mining hub.
- The BTC mining expert Jaran Mellerud stated that UAE’s partnerships with mining firms have contributed to its development as a mining hub.
- UAE’s current BTC mining capacity is 400 MW and it could surpass 600 MW by the end of 2023.
According to the latest analysis, the United Arab Emirates (UAE) has been emerging as a Bitcoin mining hub, making it a “prime destination” for Bitcoin miners in the Middle East. Jaran Mellerud, a Bitcoin enthusiast and mining expert, attributed the development of the West Asian country as a BTC mining spot to the UAE’s partnership with prominent mining firms and digital asset platforms.
Mellerud shared a series of Twitter threads on July 5, shedding light on the major developments in UAE’s BTC mining space. Drawing insights from the joint venture of Bitcoin miner Marathon Digital (MARA) and Zero Two, the digital asset arm of Abu Dhabi’s sovereign wealth fund, the crypto expert asserted that the UAE’s BTC mining journey began in early 2023.
The BTC expert reiterated that Abu Dhabi could be hailed as the “most energy-rich of the seven emirates” and the center of all mining activities in the country. He added that large-scale mining projects across the nation were organized under the leadership of Abu Dhabi’s industry players.
Narrating on the UAE’s BTC mining capacity, the BTC expert cited that the country’s operational BTC mining capacity, valued at about 400 megawatts, constitutes around 4% of Bitcoin’s global hash rate. He estimated that capacity could exceed 600 megawatts by the end of 2023 with the expansion of digital asset-friendly projects, as announced by the Government of Ras Al Khaimah (RAK).
Furthermore, Mellerud pointed out BTC mining’s efficiency to counter the massive waste of electricity in the country. He commented, “Bitcoin miners can increase the utilities’ revenues by monetizing this previously wasted electricity.”
Acknowledging UAE as a “tax haven,” the BTC mining expert remarked:
Bitcoin miners can register in one of the country’s more than 30 free trade zones and avoid corporate tax, VAT, and import duties. This is an enormous advantage in a global, cut-throat competitive industry like bitcoin mining.
Currently, UAE is free of any restrictions regarding BTC mining, permitting individual miners to operate in “a legal gray zone.” However, new regulatory schemes are reported to be implemented in the nation soon. Earlier this year, UAE introduced a set of new rules governing virtual assets.
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