After its first announcement earlier this year, Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) has reaffirmed the prohibition of cryptocurrency mining on agricultural land noting that such practices are having a negative impact on agricultural sustainability and bio security. According to the announcement, such activities fall outside the scope of permitted economic uses defined by the authority and are not allowed on farmlands.
The new reiteration comes as several farms in the UAE where misusing agricultural land for crypto mining. As a result, ADAFSA will suspend all services and support provided to non-compliant farms. The authority has confirmed that violations will be issued to both farm owners and tenants found engaging in cryptocurrency mining, given the negative impact of such practices on agricultural sustainability and biosecurity.
To deter future violations, ADAFSA has introduced strict administrative penalties, including a fine of AED100,000 ( $27,000) will be imposed on violators, with the amount doubled in case of repeat. In addition, ADAFSA will suspend all services and support programs for the farm owner, disconnect electricity to the farm, confiscate mining equipment, and refer it to the relevant authorities for further legal action in accordance with applicable legislation.
UAE allows crypto mining but not on farms
The UAE has a strong crypto mining sector in Abu Dhabi with the likes of Phoenix Group, and Marathon Digital, with Hut 8 (NASDAQ:HUT) in July of 2025 announcing it would open an office in Dubai UAE. The company also disclosed it had raised $220 million to purchase Bitcoin and mining infrastructure and has announced that by March 2025 it has approximately 10.8 GW of development capacity.
Furthermore, Hash AI has begun constructing a $2 million large-scale cryptocurrency mining facility in the UAE. Announced on their X channel, the company noted that the site will fully be owned by the company. Hash AI will be mining Bitcoin, Dogecoin, Litecoin and at later stages other crypto.
